BMA Calls For Home Improvement VAT Cuts

The Bathroom Manufacturers Association is calling on new Chancellor Rishi Sunak to cut the rate of value-added tax (VAT) on home improvements in this month’s budget. Reducing the 20% tax on home improvement will make bathroom upgrades more affordable, driving water efficiency and reducing the number of void homes, says the trade body.  

Before the General Election BMA backed a National Home Improvement Council campaign to cut improvement VAT from 20% to 5%. They believe such a measure could: 

• Create up to 95,000 jobs 

• Generate £15bn in new taxes

• Unlock £1bn green revolution 

• Reducing VAT from 20%to 5% will stimulate the economy to become net zero carbon 

This 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: 

“Today’s 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.” 

A VAT cut could also boost the eco-credentials of the UK’s housing stock, Reynolds believes. He said: 

“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.” 

Contact information: BMA CEO Tom Reynolds, 07890 633080 

Source : Bathroom Manufacturers Association

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.