Apartment Vat cut offers ‘no saving for anybody’

Sources say the Vat reduction is being recovered by the State. See Mick Clifford's analysis of the issue in print and online on Saturday, November 29. Stock picture: Larry Cummins

The Department of Housing is recovering a reduction in Vat that was granted to apartment builders in the budget to stimulate the development of new homes, according to documents seen by the 'Irish Examiner' and sources within the industry.

The reduction in Vat on the building of apartments, from 13.5% to 9%, was announced by then finance minister Paschal Donohoe in October’s budget speech, but it now appears that nobody is actually benefitting from it.