Urban Splash, a property development company which has already completed
numerous projects in Liverpool and Manchester, is calling for the scrapping of
VAT on refurbishment projects to encourage modernisation of the UK’s ageing
At present VAT is charge at 17.5% on refurbishment, whereas a new building is
zero-rated for VAT meaning that developers are often better offer demolishing
existing buildings then refurbishing them.
Urban Splash is seeking a ruling from Revenue & Customs on whether its
planned Park Hill redevelopment in Sheffield involves a sufficient degree of new
building to be zero-rated for VAT. Park Hill, a sprawling urban development from
the 1950s, is listed so cannot be demolished
It remains confident that it will get the answer it wants from the Revenue
and the scheme will be able to go ahead, the FT reported.
Nick Johnson of Urban Splash said: ‘VAT is a big disincentive to
refurbishment. It goes against best practice and sustainability. VAT can be a
make or break issue for some projects. It encourages demolition in housing
market renewal areas.’
The government says European Union law means it cannot alter the tax
treatment applied to redevelopments of existing buildings.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states