§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer for what reason he is unable to provide a disaggregated cost of the three measures outlined in paragraph 6.80 of Cm 4917; and what estimate he has made of the time that Customs and Excise staff will have to spend in ensuring that enhanced relief does not subsidise high value properties. [142251]
§ Dawn PrimaroloThese measures are part of a package worth £80 million. Customs and Excise estimate that the cost of the reduced VAT rate for work on converting residential properties into a different number of dwelling units will be around £70 million and that the cost of the adjustment to the zero-rate of VAT for the sale of refurbished vacant dwellings could be around £10 million in 2001–02. Inland Revenue estimate that the cost of the measure giving tax relief for the costs of converting redundant space over commercial premises into flats for letting will be negligible in 2001–02.
Customs will nor need extra staff to assure the package of measures for property conversions. The tax relief for converting flats over shops will exclude high value properties. The VAT proposals in the package will not, but their main benefit will be to smaller families, single people and the less well-off, by encouraging the creation of a greater number of good quality and relatively affordable homes.