Parliamentary Search

Written question asked by Ben Obese-Jecty (Conservative) on Thursday, 5 February 2026, in the House of Commons. It was due for an answer on Monday, 9 February 2026. It was answered by Dan Tomlinson (Labour) on Thursday, 12 February 2026 on behalf of the Treasury.

Thatched Roofing: VAT

Question

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of making thatching existing properties zero-rated for VAT.

Answer

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Outside of a limited number of VAT reliefs aimed at stimulating the property market, the standard VAT rate of 20 per cent applies to most construction work. This includes thatching.

Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.

Secondary information

Type
Written question
Reference
111280
Session
2024-26
Transferred
Yes
Subjects
VAT Thatched roofing
Link
View this Written question on www.parliament.uk