Treasury alters scope of reduced 5 percent VAT for construction services

Construction and repair for non self-contained living or business will be charged at 20 percent

The Treasury is to make changes to the scope of its reduced 5 percent VAT rate for construction services.

The effect will be to remove a number of services from the reduced scheme, but add others which were previously chargeable at the full 20 percent rate.

From January 1st some services, including the construction and repair of buildings within the curtilage of a domestic property which is not self-contained living accommodation, or which is to be used for business purposes - for example separate garages, sheds, garden rooms, beauty salons etc, will be charged at 20 percent.

A reduction from 20 per cent to 5 percent will be applies to the installation and servicing of fires, log burners and chimney sweeping, gutter repairs and boundary wall repairs.

Elsewhere all other services that were charged out at 5 percent under the terms of the legislation, will continue to attract the reduced rate.