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Home owners 'bringing forward big purchases' to beat VAT hike
08/12/10
Edited by Tom Bardsley.Many residential property owners look set to bring forward planned purchases of big-ticket items like furniture or white goods in order to beat the increase in VAT due to come in next year, it has been claimed.
Stuart McKeggie, head of cards at Sainsbury's Finance, said the company's research has found a quarter of consumers intend to make a major acquisition before the tax rises from 17.5 per cent to 20 per cent on 4th January.
His comments follow the publication of research by Santander Insurance UK, which showed that more than 13.75 million people are expected to spend £8.9 billion snapping up goods ahead of the change in VAT.
On average, these people will spend £650 each. In the south-east, this rises to £840, it added.
Electronic items like televisions and iPads will be the most in-demand products, topping 42 per cent of consumers' shopping lists.
Another 18 per cent are planning to buy new furniture before the VAT rise, while 15 per cent will be purchasing white goods like fridges and washing machines.
