Insurance News Archive

VAT take to be boosted by Hips

After the introduction of Home Information Packs (Hips) on June 1st, the government's coffers will be swelled by increases to value added tax (VAT) bills, it was claimed yesterday.

With the price for a pack ranging between £300 and £1,000, homeowners could be paying as much as £175 in VAT.

This will boost the annual amount paid in VAT across the country by £110 million, according to the Conservative party who are launching a final bid to scrap Hips on Wednesday with a last-ditch vote in the Commons to see it thrown out.

Commenting on the suggested figure, Trevor Kent, former president of the National Association of Estate Agents, told the Daily Mail: "VAT from the packs will be a very significant income for Gordon Brown and his successor.

"I would suggest it will lead to a doubling of VAT from the home sale process."

But in response the Association of Home Information Pack Providers estimated a significantly smaller rise in annual VAT of just £55 million.

14 May 2007