BMA call for VAT cuts

BMA call for VAT cuts

The Bathroom Manufacturers Association is calling on new Chancellor Rishi Sunak to cut the rate of VAT on home improvements in the upcoming budget.

Reducing the 20% tax on home improvement will make bathroom upgrades more affordable, driving water efficiency and reducing the number of void homes, says the trade body.

Before the General Election BMA backed a National Home Improvement Council campaign to cut improvement VAT from 20% to 5%. It’s believed that such a measure could:

  • Create up to 95,000 jobs
  • Generate £15bn in new taxes
  • Unlock £1bn green revolution
  • Reducing VAT from 20%to 5% will stimulate the economy to become net zero carbon

The budget is scheduled for 11th March is the first opportunity for the new Government to introduce such a tax cut. BMA Chief Executive Tom Reynolds said: “The BBC’s Housing Briefing estimates a 1.2 million shortfall in homes in the UK. A VAT cut for home improvements would help that situation, by making the improvements needed to void homes more affordable.”

A VAT cut could also boost the eco-credentials of the UK’s housing stock, Reynolds believes. He said: “One barrier to home-owners and landlords updating bathrooms is the cost, 20% of which goes straight to the HM Treasury. If the Chancellor reduces VAT on home improvements investing in more modern and water efficient bathrooms would become much more attractive.”

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