Question to the HM Treasury:

To ask His Majesty's Government what consideration they have given to removing VAT on refitting works to encourage developers to repurpose buildings rather than demolish them; and what other plans they have to encourage them to do so.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services.

To stimulate the renovation of existing buildings, residential renovations are subject to a reduced rate of VAT of five per cent if they meet certain conditions. These include conversions of buildings from one residential use to another, conversions from commercial to residential use, and the renovation of properties that have been empty for two or more years.

The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.