An announcement in the budget on Wednesday (21st) proposed to abolish the zero VAT rating for listed buildings, including churches. If passed after October 2012 churches will probably have to find 20 per cent more money for alterations and other new work.
It is possible that the scope of the Listed Places of Worship Grant Scheme would be extended to these works, however it is unclear how much could be reclaimed, the scheme is already under significant pressure for the repair of listed places of worship (only 46% of the VAT was awarded in the last quarter by the scheme). Also, in the future there are no guarantees that the scheme cannot be reduced in scope again (such as with the removal of profession fees, organs, bells etc).
Natalie Merry, Secretary to the Oxford DAC, said: “It is incredibly frustrating that the Government has made plans to withdraw the zero rating without even consulting those it will affect the most - charities and churches that have already been badly hit by lead theft and the reduction in the VAT rebate for repairs to historic buildings.
“The sensitive adaptation of historic churches is the key to securing their future. If the Government truly cares about that future it should pay rather more attention to the impact of their policies on those they claim to be supporting.”
