Insurance News Archive

BPF backs VAT cut to help buy to let property insurance holders

Posted by Judith Stevenson

The British Property Federation (BPF) has joined the Cut The VAT coalition to encourage the tax on home improvements and maintenance to be reduced to five per cent, aiding buy to let property insurance holders.

In addition to helping landlords, the scheme would improve the construction industry and help to meet the government's carbon emissions targets.

Alan Collett, residential chairman at the BPF, stated that the five per cent rate would be a "huge benefit to the private rented sector, leveling the playing field between those who use VAT and non-VAT registered traders and stimulating improvement in the sector's stock, 40 per cent of which was built before 1919".

Brian Berry, coordinator of the coalition, said that support for the scheme is growing, adding that it would please the building industry if the chancellor announced the reduction in Wednesday's Budget.

Earlier this month European finance ministers voted to allow the UK's VAT for home improvements, and that in other EU states, to be cut to five per cent.

23 Mar 2010