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A round-up of topical VAT issues affecting the charity
sector
Places of worship grant scheme extended
In the March 2012 Budget, the Government announced the
withdrawal of the VAT zero-rating for approved alterations to
listed buildings with effect from 1 October 2012.
At that time, the Government also announced that it would extend
the grant scheme offered by the department of culture, media and
sport (DCMS) to incorporate approved alterations to listed places
of worship to mitigate the removal of the zero-rating.
Under the extended scheme, grants may be claimed towards the VAT
paid on the approved alterations. The existing scheme will also be
simplified so that the same eligibility conditions apply for both
approved alterations, and repairs and maintenance.
Some minor changes will be made to the scheme, including:
a return to monthly payments from November 2012
the removal of restrictions on claims for plumbing and
electrical work, kitchens, toilet fittings, floor coverings,
handrails, decoration work, repair work to pews and asbestos
removal
the inclusion of claims for security systems to prevent
crime.
In addition, DCMS and HM Treasury have announced a review of
grants for the VAT element of costs not paid for by an insurance
company, with a view to removing such claims from the grant scheme
from April 2013.
The extended scheme and the aforementioned changes came into
effect on 1 October 2012 and full details of how the scheme will
work and the new application form are now available on the listed
places of worship grant scheme website (www.lpwscheme.org.uk).
Cost-sharing exemption
In past editions of the Charities bulletin, we have
reported on proposals to introduce a VAT exemption for services
supplied between specified organisations, including charities.
The relevant legislation has now been enacted and HMRC has
recently issued guidance on how the exemptions will be applied. VAT
Information Sheet 07/12 can be found on the HMRC website.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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On 18 April 2013 the UK government issued a legal challenge to the decision of the EU Council of 22 January 2013 which authorised a subset of the EU (not including the UK) to introduce a financial transaction tax.
A discussion on the changes brought by the Finance Bill in relation to the commitments to raise the Inheritance Tax and exempt limit on the value of transfers of assets to a non-UK domiciled spouse or civil partners.
In his March 2011 Budget statement the Chancellor of the Exchequer announced consultation on the introduction of a statutory definition of tax residence.
The European Court of Justice recently ruled that VAT on investment management fees paid by the trustees of a UK defined benefit pension scheme is irrecoverable under a VAT exemption for special investment contained in two EU Directives.
In the latest budget, Chancellor George Osborne announced that the corporation tax rate in Britain will be cut by an additional one per cent to 20 per cent by April 2015.
A summary of the main Budget items affecting farmers and landowners.
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