about 16 hours ago
VAT rise could cost The Church £20m a year
David Cameron is facing a backlash from the Church over a planned change in VAT for building repairs and alterations.
From October this year the Treasury will charge VAT on approved alterations to listed buildings. Currently this is exempt from the tax.
Building work is currently zero rated if it is an approved alteration to a protected building, but standard rated if it is an alteration to any other building or if it is a maintenance or improvement.
This means that, for example, repairing the roof of a listed dwelling is standard rated whilst adding an extension to a listed dwelling or installing an indoor swimming pool would be zero rated.
The new legislation will remove the anomoly but The Church and labour MPs claim that could cost the church £20m a year.