20/04/2006

VAT to be charged on HIPs

Government ministers recently confirmed that Home Information Packs – due to become compulsory in 2007 and already estimated to cost each homeowner between £300 to £700 to prepare - will be subject to VAT at the standard rate of 17.5%. The Conservatives condemned the move as a Labour stealth tax, which the party estimates will raise some £111 million per year for the government. However, housing minister Yvette Cooper told the Daily Telegraph, "Home Information Packs are strongly backed by every consumer group, and they are only opposed by those who profit from the millions of pounds wasted every day on sales that fall through."

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