Nursery Schools: Construction

Treasury written question – answered on 10th September 2018.

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Photo of Luke Graham Luke Graham Conservative, Ochil and South Perthshire

To ask Mr Chancellor of the Exchequer, whether he has plans to allow builders of new nursery school buildings to zero-rate the VAT on building materials and services used in the construction.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

The government applies a zero of rate of VAT to the construction of charitable buildings. This includes nursery buildings where they operate as charities. While all taxes are kept under review, the application of further zero rates is strictly limited by EU law.

Future VAT rules will depend on the outcome of negotiations with the EU. Any future decisions on VAT will continue to be taken as part of the normal Budget process.

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