Budget predictions for no VAT on RMI
Published: 23 November, 2009
LONDON: Accountants BDO International predicts a boost for the hard-hit construction sector by cutting VAT on repair and refurbishment of residential property to 5%, or even to zero VAT, in the budget.
Elsewhere in the sector, the Chancellor may challenge certain stamp duty land tax planning arrangements for very large commercial real estate transactions, said the accountants.
This year's Pre-Budget Report is set for Wednesday 9 December. The accountants said: "We predict that he will use the last PBR before the election to increase the yield from income tax, national insurance, VAT and customs duties - the biggest revenue generators for the government. The majority of the measures announced are likely to be deferred to take effect after the general election.