Date lodged: 5 June 2018
To ask the Scottish Government what its position is on a VAT exemption for work on high-rise buildings to remove cladding in the wake of the Grenfell Tower tragedy.
Answered by: Kevin Stewart 12 June 2018
The exemption of VAT on repair and renovation works is an issue that the Scottish Government has raised previously with HM Treasury and which has not yet been resolved. The consequences of the Grenfell Tower fire and the enormous amount of repair and refurbishment required to remove affected cladding systems has highlighted this issue once more.
It is unacceptable that we are in the situation where repair work directly linked to the replacement of ACM cladding, in order to ensure the long term fire safety of residents, will ultimately result in additional revenue to HM Treasury. I wrote to the Rt Hon Mel Stride, Financial Secretary to the Treasury on the 29 May 2018 to highlight the Scottish Government's position and request that HM Treasury put in place procedures to ensure these works are exempt from VAT or that there is an agreed mechanism for contractors who are carrying out these works to reclaim VAT so overall costs can be reduced for this important work.