Nil VAT On Empty Homes Call
Published / Last Updated on 30/12/2008
Halifax
The Government is under pressure from Halifax to offer VAT relief for home-owners renovating properties left vacant for six months. If their property has been empty for more than two years, they currently pay only 5 per cent VAT on renovations.
Local Authorities have the power to vary Council Tax exemptions for empty properties, but Halifax wants a standard approach whereby buyers of any empty home in England and Wales would qualify for a 50 per cent reduction for a maximum of 12 months, this would encourage the renovation of empty houses.
Our view
Whilst the idea may seem a good one, the reality is that the Government would lose revenue and we suggest this may be too big a pill to swallow. The fact remains that empty properties do get bought by developers and will come back on line.
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