- The current UK VAT system charges no VAT on new-build housing but 20% on retrofit projects, incentivizing demolition over reuse.
- This tax disparity is identified as the main barrier to building reuse, according to a report by Don’t Waste Buildings.
- The report urges the government to reform the tax system to encourage reuse, including equalizing VAT rates and offering targeted grants.
- Additional recommendations include tax credits, capital gains tax relief, stamp duty discounts, and long-term low-interest loans for building reuse projects.
- The initiative highlights the economic and sustainability benefits of reusing empty and underperforming buildings.
Source: circularonline.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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