{"id":962,"date":"2026-04-21T09:34:22","date_gmt":"2026-04-21T09:34:22","guid":{"rendered":"http:\/\/mycrochettips.com\/?p=962"},"modified":"2026-04-23T13:06:54","modified_gmt":"2026-04-23T13:06:54","slug":"vat-system-incentivises-building-demolition-over-reuse-report-says","status":"publish","type":"post","link":"http:\/\/mycrochettips.com\/index.php\/2026\/04\/21\/vat-system-incentivises-building-demolition-over-reuse-report-says\/","title":{"rendered":"VAT system incentivises building demolition over reuse, report says"},"content":{"rendered":"
\u00a0<\/div>\n

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\"Building<\/h4>\n

The government has created a \u2018perverse incentive\u2019 for demolishing buildings over retrofit projects, Don\u2019t Waste Buildings says.<\/h4>\n

UK construction companies are not charged VAT on new-build housing developments, but face a 20% rate for retrofit projects.<\/p>\n

A new report, The Reuse Dividend: Unlocking Economic Growth from Britain’s Existing Buildings<\/a>, says this creates a \u2018perverse incentive for demolition over renovation\u2019.<\/p>\n

Produced by voluntary initiative Don\u2019t Waste Buildings (DWB), the report claims this disparity is the \u2018single most impactful barrier\u2019 to building reuse.<\/p>\n

\"\"
The report was launched by Labour MP Rachel Blake at a reception in the Palace of Westminster. Credit: Bini Nandra, Kreative Barn<\/figcaption><\/figure>\n

DWB is calling on the UK government to overhaul the tax system to incentivise the reuse of empty buildings, warning that Britain is missing out on \u2018billions of pounds\u2019 of economic growth.<\/p>\n

Report lead author and DWB co-founder Richard Nelson commented: “A single empty building on a main street can define whether that street feels alive or forgotten. The opportunity is extraordinary. The only thing stopping us is the way we tax it.”<\/p>\n

To increase the reuse of buildings, the report recommends levelling VAT rates and creating targeted grants for struggling high streets and derelict buildings.<\/p>\n

The report also calls for tax credits or relief, such as introducing capital gains tax relief and stamp duty discounts, for bringing vacant buildings back into use while meeting sustainability quality measures.<\/p>\n

Finally, it recommends establishing long-term low-interest loans with repayment grants for deep reuse projects either through the National Wealth Fund or a similar institution.<\/p>\n

Don\u2019t Waste Buildings is a voluntary initiative that works to highlight up-front, or embodied, carbon and advocates for the productive use of empty and underperforming buildings.<\/p>\n

The post VAT system incentivises building demolition over reuse, report says<\/a> appeared first on Circular Online<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 \u00a0 The government has created a \u2018perverse incentive\u2019 for demolishing buildings over retrofit projects, Don\u2019t Waste Buildings says. UK construction companies are not charged VAT on new-build housing developments, but face a 20% rate for retrofit projects. A new report, The Reuse Dividend: Unlocking Economic Growth from Britain’s Existing…<\/p>\n

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