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VAT on housing repairs

Series: Contract Journal ; 401(6249) 27 October 1999, 3(1)Publication details: 1999Subject(s): Summary: Despite the EU ruling that member states can reduce VAT rates on repairs to private dwellings, the government has decided not to adopt a lower rate. The decision is criticised as failing to address the problem of alterations to listed buildings being zero-rated whilst repairs attract the full rate of VAT, thus encouraging owners and architects to alter historic buildings rather than repair them.

Despite the EU ruling that member states can reduce VAT rates on repairs to private dwellings, the government has decided not to adopt a lower rate. The decision is criticised as failing to address the problem of alterations to listed buildings being zero-rated whilst repairs attract the full rate of VAT, thus encouraging owners and architects to alter historic buildings rather than repair them.