§ Mr. LoughtonTo ask the Chancellor of the Exchequer who will be eligible for tax relief for creating flats over shops; and if there will be an upper limit to such relief in respect of the(a) property and (b) property owners.[138235]
§ Dawn Primarolo[holding answer 13 November 2000]: Under the proposals announced by the Chancellor in the pre-Budget Report, 100 per cent. capital allowances for the costs of converting vacant and under-used space over shops would be available to property owners who create flats for letting. The scheme will include checks to ensure this enhanced relief does not subsidise high-value properties that require no encouragement. It is not proposed to limit the total relief available to a property owner.
§ Mr. LoughtonTo ask the Chancellor of the Exchequer what is the estimated number of flats over shops which will be created by his proposal for capital allowances.[138234]
§ Dawn Primarolo[holding answer 13 November 2000]: The proposed scheme for 100 per cent. capital allowances for flats over shops is expected to support the conversion of over 1,000 flats each year over the next five years.
§ Mr. LoughtonTo ask the Chancellor of the Exchequer what advice he has received from the European Commission on his plans to(a) reduce VAT rates on residential conversions and (b) remove VAT on developers renovating and selling houses which have been empty for 10 years or more.[138222]
§ Dawn Primarolo[holding answer 13 November 2000]: Item 9 of Annexe H to the VAT Sixth Directive allows a reduced rate for alteration and conversion work to houses which is done to further a social policy. The removal of VAT from the sale of renovated houses that have been empty for 10 years is a minor adjustment and updating of the existing zero rate. There is therefore no need to seek the Commission's advice on VAT law.