Conservatories to receive boost as VAT could drop to five percent

November 17th, 2011

The Scottish building trade has received a boost after it was revealed VAT could be cut for home improvements.

The Scottish National Party (SNP) and Labour MPs urged Chancellor George Osborne to reduce the current VAT rates of 20%. It’s thought that VAT could drop to 5% for conservatories, extensions and other household repairs. This would take £750 off a £5,000 job.

And if this change does happen, you could be looking at £1,500 off a conservatory. This would open up the conservatory market, bringing in a lot more customers and helping businesses get back on their feet amid the current financial problems.

According to the Scottish Retail Consortium, DIY retailers would also benefit from the change as it’s claimed they’ve been hit hardest since the economic downturn.

As well as benefiting the conservatory industry, the VAT reductions could see £2,250 off a garage conversion and £6,000 off a two-storey extension.

Michael Levack, Scottish Building Federation chief executive, said: “It would give many building employers the confidence they need to be able to recruit and retain more apprentices.

“What’s more, evidence from the Isle of Man, where a 5% VAT rate on home improvements has been in place for years, shows that the spending stimulus it provides actually boosts the overall level of tax income from these works.”

And if you’re thinking it’s the wrong time of year to be investing in a conservatory, then you couldn’t be more wrong. Conservatories can be enjoyed at all times of the year and are not just for extensions to the garden. With a conservatory you’re creating extra space in your home to relax in.

What’s more, they’re very energy efficient, especially if made of uPVC or hardwood. Both materials will keep cold draughts out while retaining heat, so you’ll save money on your bills too.