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MPs demand single new building tax rate
Our parliamentary correspondent,
Accountancy Age 31 Oct 2005
Early Day Motion outlines single VAT rate to apply to new building and
refurbishment
Labour backbenchers have ganged up on chancellor Gordon Brown to demand a new
single rate of VAT to apply to new building and refurbishment, which will
replace existing tax incentives to demolish or build on greenfield sites.
A motion signed earlier this week by five MPs led by Blackpool South's Gordon
Marsden attacked the present 17.5% on conversion and repair work compared with
zero-rated new construction.
The MPs came out against extending zero rating but urged the government to
apply a reduced rate below 10% to all building work, including the conversion,
refurbishment and repair of historic buildings and places of worship.
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