this looks like a threat – might be worth supporting the petition..
New VAT charge for listed
The recent budget
announced that the
be holding a consultation
on charging VAT on “approved alterations” to listed
buildings as part of a move to clear up anomalies
in VAT legislation. Improvements to listed buildings,
such installing toilets and heating, are currently zero rated.
But the consultation paper proposes that the
tax relief be abolished from 1st October this year.
Repairs to listed buildings already attract VAT at 20%
and the consultation document states that “current
rules therefore give a perverse incentive for change as
opposed to repair.”
In addition the government will extend the existing grant
scheme for VAT on repairs to places of worship to cover
improvements. However, there is no mention of any
increase to this fund to cover this additional demand.
A major reason for the government wishing to close
these loopholes is that disputes about exactly how the
rules apply cause considerable administrative workload
and legal costs for HM Revenue and Customs. Details
of how to respond are on page 33 of the consultation
document and the period of consultation closes on 4th
There is an e-petition created by the Dean of Wakefield,
whose Cathedral’s scheme would be adversely affected.
Do let us know if you have projects which might be
jeopardised by this change.