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VAT: Repairs and Maintenance

Volume 493: debated on Monday 1 June 2009

To ask the Chancellor of the Exchequer if he will consider the merits of reducing the rate of value added tax on home maintenance and repairs to the minimum rate allowed under EU law. (276838)

EU Finance Ministers recently agreed to allow all member states to apply a permanent reduced VAT rate of 5 per cent. to a list of labour intensive services, including the “renovation and repairing of private dwellings, excluding materials which account for a significant part of the value of the service supplied”.

The Government apply reduced VAT rates only where we believe these would provide well-targeted and cost-effective support for its policy objectives, compared with other measures, and we continue to keep the impact of VAT on different types of building work under review.