BMA calls on government to cut VAT rate on home improvements market
The trade body has suggested that reducing the 20% tax on home improvement will make bathroom upgrades more affordable, driving water efficiency and reducing the number of void homes
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The Bathroom Manufacturers Association (BMA) is calling on new Chancellor, Rishi Sunak, to cut the rate of value added tax (VAT) on home improvements in next month’s budget.
The trade body has suggested that reducing the 20% tax on home improvement will make bathroom upgrades more affordable, driving water efficiency and reducing the number of void homes.
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Before the General Election, the BMA backed a National Home Improvement Council campaign to cut improvement VAT from 20% to 5%. The trade body believed this measure could create up to 95,000 jobs as well as generating £15bn in new taxes.
Next month’s budget, 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.
‘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.’