- this looks like a threat – might be worth supporting the petition..Graham
07974 743766New VAT charge for listedbuilding alterationsThe recent budgetannounced that thegovernment wouldbe holding a consultationon charging VAT on “approved alterations” to listedbuildings as part of a move to clear up anomaliesin VAT legislation. Improvements to listed buildings,such installing toilets and heating, are currently zero rated.But the consultation paper proposes that thetax relief be abolished from 1st October this year.Repairs to listed buildings already attract VAT at 20%and the consultation document states that “currentrules therefore give a perverse incentive for change asopposed to repair.”In addition the government will extend the existing grantscheme for VAT on repairs to places of worship to coverimprovements. However, there is no mention of anyincrease to this fund to cover this additional demand.A major reason for the government wishing to closethese loopholes is that disputes about exactly how therules apply cause considerable administrative workloadand legal costs for HM Revenue and Customs. Detailsof how to respond are on page 33 of the consultationdocument and the period of consultation closes on 4thMay 2012.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 bejeopardised by this change.