Heritage works are going to be subject to VAT from October this year the chancellor George Osborne said today, leading to predictions of a surge in alteration works as clients look to beat the deadline.
During the Budget, the Chancellor announced the publication of plans to close anomalies in the UK’s VAT system which meant that some items had not previously been subject to the 20 per cent VAT rate.
Noble Francis, economics director for the Construction Products Association, highlighted that this included the approved alterations to listed buildings, most likely to affect smaller specialist contractors and their pricing structures.
VAT will be added to heritage works from October. Mr Francis said: “This might speed up heritage works as any work going ahead in 12 to 18 months might be brought forward.”
He added: “Presumably, we’ll then see a drop in activity.”