Tax Strategy Group: VAT cuts could cause spike in house prices

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Tax Strategy Group: VAT cuts could cause spike in house prices
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Group report says past experience ‘strongly suggests the need for a cautionary stance’ on tax incentives in housing sector in Budget 2024

The government has been warned there is “strong evidence” that further tax measures should not be used in the housebuilding sector, with a cut in VAT likely to cause a spike in house prices.

The Tax Strategy Group, which is made up of staff from different government departments, has published a series of papers ahead of Budget 2024, including one document focused on taxation of housing and construction.

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