VAT to be charged on alterations to listed buildings

[rockdoctor]

Just listening to the news and apparently there is a proposal to extend VAT to alterations on listed buildings. The discussion is all about churches but it sounds as though it is going to apply to all listed buildings.

Not sure if this has been covered here before but does anyone know anything about this? I understand there is an e-petition on the Downing St website.

I know there's a few of us on here that live in listed buildings and I always thought that the VAT exemption was at least some compensation for the fact we can't do things like conventional insulation/double glazing etc. I must say I am a bit miffed, having spent two years getting planning permission for an extension that I might not be able to afford if this change comes in.

I think the changes are probably just for churches. Already for churches the property owner has to pay the VAT then can reclaim part of it under the Listed Places of Worship Scheme. The repayment depends on how much money the fund has and I think it sounds like the government isn't going to fund that scheme anymore. Very bad news for the charity I'm trustee of!

Yes, I'm afraid that listed building owners are losing our VAT exemption from 1 October onwards, so you have to get it billed for by the end of Sept.

"1.201 Over time, significant anomalies have developed in the VAT system. These cause very similar products to be taxed very differently. Budget 2012 announces that the Government will take steps to correct certain anomalies. From 1 October 2012, VAT will be extended to reduce anomalies, including the use of self storage (to align it with other forms of storage) and alterations to listed buildings (to align with the existing VAT treatment of repairs)."

So you are okay with existing plans, but not with any new ones, I'm afraid.

The only newspaper to have talked about this seems to be the Telegraph .

Thanks GrendelsMum - I thought you'd be able to clarify.

I can understand it's never going to be a mainstream or popular issue but I'm surprised there hasn't been more fuss.

I do have some sympathy and i think its been dealt with very simplisticly. The comment i read from a minister was that it was to stop people getting vat of hot tub installations. ridiculous really. particularly awful for churches etc, but then you could say the church of england is hardly hard up.

i'm afraid, however, an all or nothing approach appears easiest to adminster and avoid loopholes.

I do take the point on avoiding loopholes and administration - the ironic thing is that normally I'm all for tax simplification! But they don't seem to have gone for the 20% on new builds, so that seems rather unfair. In terms of fairness, I think it would actually have been more sensible to have reduced tax on repairs to listed buildings, since that's what you're doing to preserve the country's heritage - but then how on earth would you administer that?

Having to apply for LBC and not being able to put in more energy efficient measures does put a substantial extra cost and stress onto people preserving old buildings as it is, so it is rather disappointing that we don't continue to get our financial recognition of that.

On the plus side, still got a six months or so to have a VAT free hot-tub to live my millionaire lifestyle!