§ Mr. ShawTo ask the Chancellor of the Exchequer how many empty homes will qualify for a reduction in VAT as announced in his Budget Statement 200]. [1948]
§ Mr. BoatengCustoms estimate that the reduced VAT rate for renovating empty homes should help to bring back into use up to 2,400 empty homes each year. Additionally, the Budget made a minor adjustment to the zero rate for the sale of renovated long-term empty houses, which from 1 August will benefit from relief if they have been empty for 10 years or more. This is expected to bring back into use up to 25 empty houses a year.
The measure has been warmly welcomed by the Empty Homes Agency.
§ Mr. ShawTo ask the Chancellor of the Exchequer by what criteria owners of empty properties will qualify for a reduction in VAT when renovating their properties. [1955]
§ Mr. BoatengA reduced 5 per cent. VAT rate applies to renovation work on an empty home that has not been lived in for three years or more.
The Government did not, however, want to disadvantage people who have to live in a house while renovating it. So if someone buys a house after it has been empty for three years or more and lives in it during the renovation work, the reduced rate applies to the building work provided it is completed within one year from the date the owner bought the house.
In addition, from 1 August, no VAT applies to the sale of a renovated house which has been empty for 10 years more.