Village Halls: Construction

(asked on 22nd July 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has change the rate of VAT applied to the construction of new village halls.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 1st September 2020

Consumers already benefit from a reduced VAT rate of 5 per cent on residential construction under certain conditions. This includes conversions of buildings from one use to another, and the renovation of properties that have been empty for two years or more prior to the renovation work.

Going further would be very expensive: reducing VAT on all property renovation, repairs and improvements would cost the Exchequer approximately £6 billion per year. Although all taxes are kept under review, the Government has no plans to change the VAT treatment of construction at this time.

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