Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 January 2022 to Question 103583 on Housing: Building Alterations, what recent estimate his Department has made of the cost to the Exchequer of removing VAT for all building works undertaken for the adaption of a residential property to meet a disabled persons needs has his department undertaken.
The Government has not estimated the cost to the Exchequer of removing VAT for all building works undertaken for the adaptation of a residential property to meet a disabled person’s needs.
The scope of the existing VAT reliefs covers alterations specifically for assisting with a disability.
Disabled people benefit from the zero rate of VAT on certain building works, the reduced VAT rate of 5 per cent on residential construction under certain conditions, and some additional zero-rates on alterations such as work on ramps, bathrooms, lifts, and widening doorways.
Although all taxes are kept under review, the Government has no plans to introduce new VAT reliefs at this time.