News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the December 1999 / January 2000 issue RPI news archive

New house VAT charge proposed - December 1999 / January 2000

A suggestion that VAT should charged on new homes is being floated by the Government.

Experts say the rate would probably be between 5 per cent and 7 per cent and could be introduced next year. At this level it would push up the cost to new house buyers by over £5,000 on a property sold for £80,000.

The Cabinet Office proposal is that the VAT increase be part of a package to help protect the countryside. At the same time the VAT rate levied on improvements, currently 17.5 per cent would be dropped to the same rate applicable to new homes.
 

other artilces from the December 1999 / January 2000 issue

• Stamping on landlords
• Councils chided on fraud response
• Manchester bucks house sale trends
• New house VAT charge proposed
• Radioactive warning
• Hi tech future on one level
• Spring start to builders' quality mark scheme
• LPG mobile heater warning
• Squatters profit from Lambeth losses
• In brief
• An alternative to custodial penalties