Trade Body To Lobby for VAT Reduction on Property improvement

UK trade body The Property Care Association (PCA) has written to the Chancellor of the Exchequer, George Osborne, calling for a reduction in VAT on building repair and maintenance with a view to bring parity between the repair and maintenance and new build sectors of the construction industry.

Although the building of new properties is currently exempt from VAT, the standard rate of 20 per cent will soon be payable on building repair and maintenance work.

According to Stephen Hodgson, general manager of the PCA, a reduction from the standard rate for refurbishment projects would help support the UK’s stricken economy on the road to recovery.

Stephen said: “A reduction in the rate of VAT levied on repair and refurbishment would stimulate growth in the refurbishment sector, have the effect of improving the condition of existing housing stock, create employment and potentially increase tax revenues rather than diminish them.” 

“The increase in VAT unveiled in the budget will increase the gulf between legitimate companies and those operating in the black economy. It places additional costs on law abiding contractors and will almost certainly result in the proliferation of unsafe practice, poor work and the loss of tax earning jobs as consumers look to save money by employing those who operate outside the law and tax system. June 22 2010 will be remembered as a very dark day for the UK building repair and maintenance industry.

“In spite of the announcements in the Budget we will continue to lobby for adoption of a system of tax that can help stimulate rather than disadvantage the legitimate repair and maintenance sectors.”

Noted for its training and technical expertise, the PCA, represents the UK’s structural waterproofing, wood preservation, damp proofing, flood remediation and structural repair industries. 

The Association - which has its headquarters in Huntingdon – sets high standards of vetting for potential contractor members and carries out rigorous audits on existing members – incorporates the British Wood Preserving and Damp-proofing Association (BWPDA), which has been in formation for more than 75 years.

ENDS

Notes To Editors

The PCA is a member of TrustMark the scheme supported by the Government, to help property owners find reliable and trustworthy tradespeople to make home improvements.

As well as delivering a trusted repair procedure, PCA members are able to carry out specialist surveys as part of the house-buying procedure  to identify potential problems – as well as a range of other services  designed to preserve and protect homes and buildings across the UK.

To find a PCA member log on to http://www.property-care.org and select the ‘Find A Member’ service.

Press release issued by Lis Foster of Shepherd PR Limited, on behalf of the Property Care Association, telephone 01538 308685, mobile 07985 129315.