LISTED PLACES OF WORSHIP SCHEME CHANGES
For several years those who have Listed buildings [A, B or C] have been able to recover the Vat on the majority of work to repair and alterations to Listed Buildings. That has changed.
This year the Govt have set aside a sum of £23m for recovery of Vat on all denominations throughout the UK. However there is now a ceiling of a maximum recovery of £25k per building, which equates to expenditure of £125k, any expenditure above that sum will not benefit for Vat recovery.
Two other points we need to take account of. The changes referred to relate to the current financial year only. Next year the scheme might be abandoned. The second point is that once the £23m is used up there will be no Vat recovery at all.
What should we do?
On routine works and relatively small works, get on with them as soon as possible. To complete within the current financial year.
On major projects, those broadly in excess of £1 25k, many which take more than a year, between initial planning start and submission of accounts, we need to budget for loss of recovery of any Vat. That would place a 20% increase on the project costs.
Vat legislation presently 0% rates new build structures. Total demolition of an existing church and replacement with a structure capable of meeting all needs might be a better solution that altering existing. In some cases retention of an existing facade, if Planning condition can still be 0% rated.
Roger Dodd Pres Prop Convener Feb 2025