The Federation of Small Businesses ask for reduced rate of tax

The Federation of Small Businesses (FSB) has called upon the government to reduce the rate of tax charged on companies who undertake house renovating work and home improvements.

A poll by the organisation of its members operating in the construction sector found that 59 per cent of them have seen trade falling off recently.

According to the FSB, this problem could be alleviated by the government cutting the 15 per cent tax it currently charges on home renovations and reducing it to a five per cent flat rate.

John Walker, national policy chairman for the FSB, said:

“People who were thinking of adding an extension to their home, renovating their bathroom or building a garage, should be given the incentive to go ahead.”

Recently, a survey by HSBC found that adding an extension or a conservatory to a house can potentially increase its worth by thousands of pounds.

Source: Adfero

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