Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to equalise the zero rate of VAT on new build construction with remediation costs faced by leaseholders in unsafe buildings.

The Government currently maintains a zero rate of VAT on the construction of new build residential homes.

Remediation work may also qualify for a zero rate as ‘snagging’. This applies when the remediation work forms part of the original construction and the person requesting the remediation work is either the owner, developer, or contractor during the original construction works. Otherwise, remediation work falls under repair and maintenance and attracts the standard rate of VAT.

Going further would come at a cost to the Exchequer. Given this, the Government has no current plans to change the VAT treatment of construction.