§ Mr. Tom KingTo ask the Chancellor of the Exchequer how much revenue would be lost by reducing the rate of VAT on refurbishment and conversions of existing dwellings from 17.5 per cent. to 5 per cent. [43860]
§ Dawn PrimaroloThe cost of reducing VAT on all house repair and maintenance to 5 per cent. is estimated to be £1.1 billion. From the source data, it is not possible to separate refurbishment from repairs and maintenance.
§ Mr. Tom KingTo ask the Chancellor of the Exchequer how much revenue would be generated by introducing value-added tax on(a) new construction and (b) new housing at a rate of 5 per cent. [43859]
§ Dawn PrimaroloThe additional revenue yield from introducing VAT at 5 per cent. on the construction of new dwellings is estimated to be £550 million. There is no official estimate of the expected yield from introducing VAT on the construction of other new buildings currently qualifying for zero-rating.