The VAT scheme that allows listed places of worship to claim back the VAT on the cost of repair work is to be extended with effect from 1 October 2013.
Full details on how the changes will apply are not expected to be available until 1 October, but are reported to include administrative simplifications and additional eligible works to increase VAT recovery in certain areas, including works to pipe organs, turret clocks, bells and bell ropes, and most significantly, professional services directly connected with any eligible expenditure. The inclusion of professional services is a welcome revision as VAT recovery on such costs was previously blocked as not being eligible expenditure.
As the changes take effect from 1 October 2013, it is anticipated that new eligible items will only be included where the work is undertaken on or after 1 October 2013, and we would expect detailed information to include commentary on VAT invoicing.
This is an important and welcome change for listed places of worship, and should be taken into account when considering fund-raising and grant funding applications.
Those involved with current and planned repair works are advised to review their current plans to consider the VAT impact.
For more information on how the VAT changes affect your listed place of worship contact Karen Mulcahy on 01962 735 350 or via email at Karen.mulcahy@thevatconsultancy.com
