Heritage sector unites to oppose VAT hike
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little-regarded item in the Budget of 21 March was the announcement, alongside the more widely bemoaned ‘pasty tax’, of the removal of the zero rate VAT from ‘approved alterations to protected buildings’. According to the HMRC Consultation Document a protected building is ‘a listed building or scheduled monument that is, or will become on completion of the work, a dwelling, a residential building such as a nursing home or student accommodation, or a building used by a charity for non-business purposes such as a place of worship, a village hall or similar.’ In addition to the issue of hot food, the measure was lumped in with other such ‘borderline anomalies’ as holiday caravans, self-storage, sports drinks and hairdressers’ chair rental. It is intended to remove the ‘perverse incentive to change listed buildings rather than repair them’. Repair and maintenance of listed buildings is standard rated at 20%. The announcement, which was unexpected, drew an almost immediate response from the Listed Property Owners’ Club. LPOC’s VAT adviser Dave Brown commented “The majority of projects that I get involved with are simply restoration jobs – and with VAT at 20% being payable on these works in future, home owners are likely to ‘make do and mend’ – or else purchase non-listed buildings next time. The end result, unfortunately, is that many historic buildings will simply fall into a state of disrepair. “Listed property owners have a hard enough time looking after the often fragile state of their homes that any disincentive introduced will, in the long-term, damage the heritage of the United Kingdom.” The sentiment was echoed by Loyd Grossman, chairman of the Heritage Alliance, who said: “The very real fear is that this will
Repair and maintenance are already taxed at 20% discourage people from making improvements to listed buildings. It may make the difference between them having a future and losing them altogether. “Previously the Treasury has never accepted that VAT was a single issue that could change development decisions, but this change may have the power to really influence decisions. I think it may prevent buildings from being altered in a way that gives them a sustainable future. Without mod cons such as kitchens, loo’s and disabled access, how can these buildings be adapted to modern use and earn their keep?” The Society for the Protection of Ancient Buildings declared: “The government indicates that it wishes to remove the ‘perverse incentive’ that currently encourages alteration rather than repair of listed buildings. The Society has long argued that this perverse incentive should be removed, but not through the imposition of VAT on alterations. We believe that zerorating should be applied to works of repair, or that there should be a lower rate of VAT
for all works of repair and alteration to listed buildings.” The argument to reduce VAT on all repairs and alterations was also put forward by RICS, whose UK head of external affairs, Stephen Thornton, said: “The Chancellor has missed a golden opportunity to create a level playing field of 5% VAT on all home repair, maintenance and improvement work.” RICS is a member of the Cut the Vat Coalition (www.cutthevat.co.uk), a group of over 50 organisations and individuals who have campaigned over a number of years for a reduction in VAT on all home repair, maintenance and improvement work. The time given to respond to the consultation was originally 4 May, but that has since been extended to 18 May. The consultation document can be viewed at www.hmrc.gov. uk/budget2012/vat-con-4801.pdf. In addition to responding to the measure via the HMRC website, LPOC is encouraging people to protest to their MP’s over the measure. R
SPAB announces successor to FiM
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n April SPAB announced it has received initial support from HLF – including a development grant of £67,900 – for a successor to its Faith in Maintenance (FiM) scheme, designed to create and sustain a series of ‘local maintenance co-operatives’ which will link groups of people caring for places of worship and encourage them to work together to tackle common problems. SPAB plans to use the development grant to shape and co-ordinate the Maintenance Co-operative Movement, a network of mutual support, information and practical advice for volunteers who look after historic faith buildings, with the help of the National Churches Trust. The aim is to help people at the sharp end of maintenance to help each other.
According to SPAB: “FiM was never intended to last beyond five years, but its success and enthusiastic reception has proved that there is a strong and definite need for a successor scheme to develop and continue the key elements of the project. The new Maintenance Cooperative Movement will allow people to share ideas, resources and good practice as well as to benefit from mutual support.” During the initial development phase, SPAB and the National Churches Trust, in consultation with sector partners including English Heritage, the major denominations and local churches trusts, will identify five broad geographical areas where a series of linked local maintenance co-operatives will be established. R
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