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The New VAT on Construction of Commercial Property: The Fall-Out on Urban Regeneration

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  • Robert J. Bennett

Abstract

This paper outlines the economic impacts of the VAT recently introduced on new commercial construction projects. It concludes that significant adverse effects will arise in the financial services sector which is exempt from VAT. Because of the locational demands of this sector there is likely to be a major impact on urban regeneration projects around the country. There is thus a major conflict in government policy arising from the framing of the legislation on VAT and the Government's declared intention to stimulate urban regeneration through the Action for Cities Programme.

Suggested Citation

  • Robert J. Bennett, 1991. "The New VAT on Construction of Commercial Property: The Fall-Out on Urban Regeneration," Fiscal Studies, Institute for Fiscal Studies, vol. 12(1), pages 78-87, February.
    • Handle: RePEc:ifs:fistud:v:12:y:1991:i:1:p:78-87
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