Thursday, 17 May 2012

VAT on alterations to listed places of worship

Updated Friday morning

I have written about this earlier here, here and here.

But today the Church Times reports that We will cover your whole VAT bill, says Osborne.

The Government is to find an extra £30 million a year to help repay the VAT bill on alterations to listed places of worship, it was announced today. The move marks a sig­nificant concession after zero-VAT rating for alterations was removed in the Budget. …

And the Church of England has this press release: Government agrees £30 million extra to resolve VAT concerns.

Updates

The Hansard record of the Chancellor of the Exchequer’s announcement in the House of Commons

Richard Chartres in the Church Times Saved by the churches’ service

The Telegraph Osborne unveils £30m package to help churches

BBC Church of England welcomes money to offset VAT on alterations

James Chapman in the Mail Online Osborne in £30m heritage tax U-turn: Compensation fund to relieve burden on churches

ITV News VAT help “doesn’t go far enough”

The Heritage Alliance The Heritage Alliance responds to the Chancellor’s announcement.

Posted by Peter Owen on Thursday, 17 May 2012 at 2:10pm BST | TrackBack
You can make a Permalink to this if you like
Categorised as: Church of England
Comments

What an interesting and fairly detailed account of how policy is changed.

Posted by: Martin Reynolds on Thursday, 17 May 2012 at 5:10pm BST

Am I alone in wondering if the intention is to fully cover the VAT charged by a grant from government funds drawn from tax receipts, why charge the VAT in the first place? This is ludicrous. What a waste of everyone's time, effort and money, including Civil Servants'.

Posted by: Ian Black on Friday, 18 May 2012 at 7:49pm BST

You charge VAT in the first place because then you have the payment system in place and it will be much easier to gradually erode the grant over time.

Posted by: Erika Baker on Monday, 21 May 2012 at 8:09am BST

If I understand the new system correctly, it is not the case that all VAT will be reimbursed but that as a fixed amount of money will be released to reimburse churches for VAT. Depending on how many undertake reordering projects and how expensive they are (I believe Wakefield Cathedral's VAT bill alone is £2m), some churches will only get back around 40% of their VAT outlay. The details don't seem to be fully agreed as yet, but the devil certainly appears to be in them!

Posted by: Erika Baker on Tuesday, 22 May 2012 at 9:30pm BST
Post a comment









Remember personal info?

Please note that comments are limited to 400 words. Comments that are longer than 400 words will not be approved.

Cookies are used to remember your personal information between visits to the site. This information is stored on your computer and used to refill the text boxes on your next visit. Any cookie is deleted if you select 'No'. By ticking 'Yes' you agree to this use of a cookie by this site. No third-party cookies are used, and cookies are not used for analytical, advertising, or other purposes.