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The Government already maintains a reduced rate of VAT at five per cent, subject to
certain conditions, for residential renovations.<p> </p><p>Introducing a zero rate
of VAT would come at a significant cost to the Exchequer, estimated at about £4 billion
per year, which would have to be balanced by a reduction in public spending, higher
borrowing or increased taxation elsewhere. While the Government keeps all taxes under
review, there are no plans to change the VAT treatment of the repair and renovation
of buildings.A</p>
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