A high-profile campaign called ‘Axe the Safety Tax’, which is endorsed by a number of MPs and celebrities, is about to launch to abolish VAT on all safety products and services that go into UK homes.
The campaign is calling on the Government to scrap the 20 per cent VAT element on a range of products including fire alarms, carbon monoxide detectors, gas safety checks, fire doors and fire extinguishers.
MPs are teaming up with former England footballers Jamie Carragher and Robbie Fowler, musician Midge Ure and TV celebrity Paddy McGuinness to help save lives through cutting VAT. In addition, several leading housing associations are backing the campaign.
The organisation behind the campaign is Gas Tag, a gas safety technology business. As the firm’s spokesman pointed out, annual MOT inspections, which are also aimed at saving lives, are zero-rated, as are safety products in newly constructed homes. However, when a landlord, tenant or owner of an existing property purchases potentially life-saving equipment, VAT is added. In his opinion, “at a time when safety is in the spotlight, raising money in taxation from making homes safer is… not a reflection of the compassionate society in which we live”.
His words were echoed by one of the MPs supporting the move, who said that “safety is rightly at the top of the political agenda”. He added that “it is ridiculous that tax is charged on safety products and services”, so “removing the VAT will make them more affordable and save more lives”.
There are almost 10 million rented homes in the UK, including 4.3 million social and 5 million private rented properties. Housing associations and landlords have a legal obligation to ensure these homes are safe. The VAT raised annually on safety products and inspections across the social housing sector is in excess of £200 million.
