VAT rise increases incentive for new build vs restoration

[Wren]

So as I understand it (?) we have an even bigger gap between the cost of tearing down and rebuilding, and restoration.
New build zero rated vs restoration which has additional cost from VAT of 20%.

 

[robgil]

i am so glad i dont have to pay vat on mud and straw.

 

[philpjuk100]

(if you drive a car, car - I’ll tax the street;
(if you try to sit, sit - I’ll tax your seat;
(if you get too cold, cold - I’ll tax the heat;
(if you take a walk, walk - I'll tax your feet
john and paul "the tax man"

 

[Flyfisher]

Er, George Harrison actually, but a great song nevertheless.

"'cos I'm the taxman, yeah I'm the taxman . . . . and you're working for no-one but me"

 

[Penners]

George Harrison actually

Yeah - don't mess with FF when it comes to music factoids. :wink:

 

[philpjuk100]

AH George,god bless him (Ill see you in my dreams)

 

[biffvernon]

So as I understand it (?) we have an even bigger gap between the cost of tearing down and rebuilding, and restoration.
New build zero rated vs restoration which has additional cost from VAT of 20%.

That's a worthy observation. Don't blame me, I didn't vote for this lot. Those who did are bonkers.

 

[Pford75]

That's a worthy observation. Don't blame me, I didn't vote for this lot. Those who did are bonkers.

Well, another interpretation is that the last lot p!ssed away so much of our money on wars, benefits to the workshy and ridiculous initiatives that the incoming govt had no alternative.

The fiscal irresponsibility of Labour is the root cause

 

[FamilyWiggs]

Quite right Pford75 - Gordon Brown, the £645bn man who ended boom and bust by busting the country. Every time the Tories come to power it is to sort out the economic mess left by Labour. :evil:

But who'd have thunk that the first Conservative budget in 13 years would take a further 1m of the lowest paid out of income tax all together, would have restored the earnings link to pensions (with a triple lock to guarantee a future annual rise of either earnings, CPI or 2.5% whichever is the highest) and would have spent £2bn on increasing the child tax credit by £150 over indexation?

As the cliche goes - Tough (because it needed to be very very tough), but fair - and indeed progressive in many elements too. No wonder Harperson could only flap shrilly in response.

However, you can never judge a budget until a few days after it is delivered . Let's see how the analysts and papers view it by the weekend. Personally we've done very badly out of it (before you even consider the VAT increase too) - on income tax, NI and public sector pay freeze. But that is as it should be.

 

[Flyfisher]

I was in Austria last week and VAT was 20%. In fact, it seemed a pretty expensive place altogether.

According to this http://en.wikipedia.org/wiki/Value_added_tax#EU_countries, the UK's 17.5% is among the lowest of the lot and the increase to 20% will bring us pretty much in line with everywhere else. I know there are many other variables involved, but it surprised me. I guess I must lead a sheltered life these days.

 

[biffvernon]

A great many people are in denial. The real problem is illustrated here:

Since May 2005 conventional crude oil production has been bumping along at about the same rate despite all attempts to increase production in response to price signals. The world's economies are closely tied to this graph, the stuff we use being closely correlated with oil production. For three years we grew the economies on a business as usual basis by allowing the banks to increase the money supply. Then in July 2008 when the oil spot price reached $147 enough investors took fright and pulled the plug on sub-prime lending. The rest, as they say, is history. But few people have read that recent history book, they just run around blaming politicians, bankers, scroungers, plastic window salesmen or whoever is out of fashion this week.

The world is in denial that economic growth will not continue as oil production declines. It is just too frightening a prospect as the whole financial system will collapse, taking with it much of what we call civilization.

It is time to learn the arts of vegetable growing.

Cue a denialist statement from our friend, pford.

 

[skier-hughes]

It is time to learn the arts of vegetable growing.

But then lots of people are against vegetable growers
What happened to the eco village thread?

 

[Moo]

What happened to the eco village thread?

Pm Joce for info (if she hasn't already pm'd you)

And a little plea for restraint regarding thread drift (I never thought I'd see myself ever writing that). The thread title isn't about the VAT increase in general, but a continuation of the much more specific one about VAT on restoration.
Neither the previous nor the present government has shown any awareness of the very important issues involved, so I think our collective energy would be better used on some serious lobbying rather than dissipated in another bout of party political squabbling.

 

[Flyfisher]

Presumably the heritage bodies have been lobbying, but I do wonder if it's a bit risky in raising the issue too much because it would be so easy for the government to decide that it's a complete anomaly to zero-rate alterations to listed buildings and so they might just remove that anomaly without changing the VAT rules for repairs.

 

[FamilyWiggs]

a little plea for restraint regarding thread drift

Anyone on here know how to fly a jumbo jet? Just wondered.... :wink:

 

[robgil]

carefully?

 

[biffvernon]

No, sorry, but I know a bit about tropical fish keeping.

 

[FamilyWiggs]

Did you say tropical or topical? :lol:

 

[Schoolmarm]

Ok then, no vat on restoration but 20% on new builds. I can't see why not.

 

[biffvernon]

That's far too sensible for a government.

Now stop trying to avoid thread drift