Cut VAT on Residential and Commercial Extensions

Well further to my recent blog I have actually started an e-petition trying to encourage people to support the cutting of VAT on building extensions for a period of two years.

Cut VAT on Building Extensions

I thought that instead of the usual apathy let’s try and do something about it - you never know, it may work!  So please feel free to sign-up to the petition.  I am sure the reduction in VAT for extensions would be a tremendous boost to the construction industry. Thinking about it logically, if by this reduction 5000 people across the country were inclined to undertake a £50,000 extension, that would result in another £250million circulating around the economy.

The current 20% VAT on a £50,000 extension is another £10,000 which goes straight to the Government.  Our clients say that this additional money is currently stopping them from extending primarily for two reasons:

1) the cost itself and 
2) it takes the value of the house above the price ceiling of the other properties in their road.

What I consider important is that this would boost local economies around the country, helping small builders, electricians and plumbers etc.  All these people would then surely look to spend back into their local economy.

The link for the e-petition is

http://epetitions.direct.gov.uk/petitions/39637

Please have a look and consider signing.