Clause 95 - VAT: Residential Conversions and Renovations
Finance Bill
4:30 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
I am grateful to the hon. Gentleman for speaking to me about this issue just before the sitting started.
The changes do nothing for residential properties in the way that the hon. Gentleman suggested. A conversion of a non-residential building into an RRP unit already benefits from having no VAT burden, so there is no need for change there. There is no relief for renovations of RRP buildings just as there is no relief for general renovations, apart from for the special category of properties that have been empty for three years. The Government did not believe that we should introduce a general relief on all renovations, and we do not plan to make such a radical change. However, I listened carefully to the hon. Gentleman's comments and I know that he has had particular representations. I would like more time to consider his points, and I will ensure that my officials have discussions with the relevant organisation to determine whether a perverse incentive has inadvertently been put into the system. Naturally, we want to follow that up. I would be pleased to write to the hon. Gentleman when I have had time to examine it in a little more detail. I know that other members of the Committee, too, are interested in the issue.
Mr. Alun Michael (Cardiff, South and Penarth) rose—