Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the impact on carbon emissions of charging VAT on the repair and maintenance of residential properties; and what plans they have to ensure that the VAT treatment of (1) constructing new build, and (2) repairing and maintaining existing, residential property is aligned.

The Government currently maintains a zero-rate of VAT on the construction of new build residential properties. This is to provide a lower burden of tax for purchasers of new homes. The supply of existing homes is exempt from VAT for the same reason. Renovation and conversion costs are also eligible for a reduced rate of VAT, providing conditions are met.

While all taxes are kept under review, the Government has no plans to review the VAT treatment of housebuilding and repair at this time.