My HBF
VAT Treatment for New Homes
New homes are zero rated for VAT in the UK. Other EU members states have a range of different VAT treatments. The UEPC, which represents the development industry at the European level, agreed a paper prepared by HBF in Dublin on 27 May 2005 which argued for major changes to the VAT treatment of new homes across the EU. A revised paper, again prepared by HBF in the light of recent European Commission thinking, was submitted to the Commission on 9 May 2008. The thrust of both papers was to allow the reduced-rates currently available to some Member States under temporary derogations to become permanent and available to all Member States, while at the same time protecting the UK's unique zero-rating of new homes.
HBF Contact for VAT
John Stewart, Director of Economic Affairs
Tel: 020 7960 1608
Email: John Stewart
