NHIC: Home improvements VAT should be cut


The National Home Improvements Council (NHIC) has joined the voices calling for a reduction in the rate of VAT charged on home improvements.

According to the organisation, which represents companies that work in the home improvement sector, a VAT cut would help the construction sector as well as potentially making it cheaper for homeowners to install double glazing or build conservatories.

Andrew Leech, director of the NHIC, explained that the European Union recently ruled that member states can reduce the VAT rates charged on home improvements, meaning that the decision is now up to the UK Treasury.

He added: “If we get a reduction on VAT and homeowners and small businesses take up the offer of improvements, then that will help kick-start the building industry.”

Recently, the Federation of Small Businesses called on the government to cut VAT from 15 per cent to a flat rate of five per cent for home improvements.

Source: Adfero

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