Taxman to give £500m rebate to house-builders

Posted under Advice by Alan

House builders, who have been struggling hard for more than a year due to mortgage squeeze and a continuous fall in house prices, which contributed to sharp decline in property transactions, are going to benefit through £500m rebate being given by the taxman.

The industry has been badly hit as potential buyers of property are not able to get loans on easy terms and many of them prefer to wait for some more time in anticipation of further fall in property prices and cuts in interest rates.

The housing industry would receive huge rebates following big losses in last one and half year due to writing down of land value by the developers. Revenue and Customs is reported to be working expeditiously for payment of rebates to provide some relief to the ailing sector.

House builder Persimmon has been in deep trouble since it could sale only 10,202 units in 2008, down from 15,905 which sold in 2007. It got relief after receiving £150 million following write-down of £640 million of its land value in 2008. The housebuilder could reduce its debt by 34% to 600 million in last 6 months.

The revenue and Customs are also likely to offer rebates to house-builders Bellway, Redrow, Barrat, Bovis and Taylor Wimpey in the next few months.

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