A round-up of topical VAT issues affecting the charity
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
the inclusion of claims for security systems to prevent
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).
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.
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