Cutting VAT would have 'positive impact' on landlords

Posted: 23 May 2008 11:29:33 GMT


            Property News - Cutting VAT would have 'positive impact' on landlords

As the government calls for a reduction in VAT on repairs and maintenance, a trade association has given its backing to help improve the seven million "non-decent" homes in the UK.

As the government calls for a reduction in VAT on repairs and maintenance, a trade association has given its backing to help improve the seven million "non-decent" homes in the UK.

The Federation of Master Builders (FMB) today (Friday, May 23rd) said that it welcomed the government report which suggests high VAT encourages landlords to neglect their properties.

Brian Berry, director of external affairs at the FMB said: "The current high rate of VAT on building repair work acts as a disincentive for private landlords to maintain their properties. In many instances, this results in tenants living in misery because their landlords will not carry out basic repairs on their properties."

Reducing VAT from 17.5 per cent to five per cent would, according to the FMB, have a positive effect on areas in need of regeneration.

Mr Berry said that making improvements that were environmentally sustainable could even reduce carbon emissions in depressed areas.


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