Budget - Tax breaks for eco-improvements

Chancellor Gordon Brown loosened the country's purse strings when it came to green housing issues today, as he delivered his 11th - and final - budget to the House of Commons. While announcing that all carbon-zero homes would be exempt from stamp duty from October this year, this only applies to new properties. For existing homes, the Chancellor has made other provisions such as tax breaks for certain alterations that older people make to their homes.

Mr Brown confirmed he would slash VAT payable on such home improvements from its current 17.5% down to 5% - the lowest rate available under EU VAT agreements. The changes will take effect on July this year, following discussions between the Chancellor and representative groups.

Mr Brown also said he would be in increasing the funds available through the DTIs Department of Trade and Industry Low Carbon Buildings Programme - a supplier of grants to homeowners wanting to make green improvements. He will be raising the total funds to over £18m in an attempt to meet growing demand.

Away from British shores, Mr Brown has earmarked £800million for the Environmental Transformation Fund. This finances overseas development projects that deliver poverty reduction and environmental benefits throughout developing countries.

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2007-03-21 16:25:53 © Moneyextra.com