The autumn 2021 budget, released today, was quiet from a VAT perspective.
The speculated decrease in VAT on household energy bills was not announced, and there has been no change to the ‘temporary’ VAT rate of 12.5% in the hospitality sector.
The chancellor discussed certain funding measures to assist the NHS and public sector however, this did not include any changes to the current system or level of VAT recovery by NHS trusts.
While the announcement will not lead to any significant changes in the VAT due by self builders and developers alike, a ‘Residential Property Developers Tax’ was introduced to assist in the funding of replacing unsafe cladding in high rises.
Residential Developers earning profits of £25m annually will be charged at a rate of 4% and the tax rate will be introduced from April 2022.