Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of removing all VAT from costs incurred as a result of building works undertaken in residential properties that are required to adapt a property to meet a disabled persons needs prior to the economic and fiscal forecast in spring 2022.

This question was answered on 18th January 2022
Disabled people benefit from the zero rate of VAT on certain building works, the reduced VAT rate of 5 per cent on residential construction under certain conditions, and some additional zero-rates on alterations, such as work on ramps, bathrooms, lifts, and widening doorways. Further information can be found here: https://www.gov.uk/guidance/reliefs-from-vat-for-disabled-and-older-people-notice-7017

Extending the current reliefs further would come at a cost to the Exchequer, and this must be viewed in the context of around £50 billion worth of requests which have been received since the EU referendum.

Although the Government keeps all taxes under review, going further would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in the year 2019-20, and helps to fund key spending priorities, including on health, education, and defence.