Question to the HM Treasury:

To ask His Majesty's Government whether they plan to remove VAT from work and building materials that are utilised to repurpose old buildings into housing.

There are a number of VAT reliefs on construction work to properties already for residential use. For instance, a reduced rate of VAT at five per cent applies to residential renovations, subject to 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 years or more prior to the renovation work.

The Government also maintains a zero rate of VAT on new-build residential or qualifying buildings to encourage the construction of new homes.

VAT is the UK's second largest tax forecast to raise £176 billion in 2024/25. A vital source of revenue that helps to fund public services.

The Government keeps all taxes under review as part of the policy making process.