Osborne under fire over listed building tax

Posted on by Listify Me

Calls for chancellor to scrap plans for VAT on listed building alterations

George Osborne is facing mounting pressure to reverse his decision to impose VAT on listed building alterations.

The decision to scrap tax relief for listed building alterations, announced in this year’s budget, meant the cost of many heritage projects suddenly jumped by 20%.

Fifteen heritage and construction organisations have called on the chancellor to reverse his decision after a Freedom of Information request by the Heritage Alliance revealed that the policy was based on a tiny proportion of recent planning decisions.

The request revealed that the decision to scrap VAT relief for listed building alterations in this year’s budget was based on an analysis of just 105 cases. There are almost 30,000 listed building consent applications each year.

In a letter to The Times, organisations including the Federation of Master Builders, the Countryside Alliance and the Historic Towns Forum, warned the chancellor that the decision is putting historic buildings at risk. They also warn that cancelled projects are holding back the construction industry.

“The chancellor must recognise that the risks are simply too high to carry on as planned and must review the proposed implementation of VAT on alterations to listed buildings before it is too late,” they added.

Ministers have claimed that the policy is aimed at stopping millionaires installing swimming pools tax-free. The groups behind the letter examined more than 12,000 recent applications and found only 34 for swimming pools.

Shortly after introducing the policy the Treasury announced that a fund providing VAT relief for listed places of worship would be increased. The groups see this as an admission that other listed buildings will be put at risk.

A reversal of the policy would be the latest in a series of U-turns following April’s budget. Osborne recently backed down on plans to introduce VAT on hot pasties and taxes on charitable donations.

The full list of signatories to the letter was:

  • Brian Berry, Federation of Master Builders
  • Sir Barney White-Spunner, Countryside Alliance
  • Shaun Spiers, Campaign to Protect Rural England
  • Peter Anslow, Managing director, Listed Property Owners Club
  • Steve Bratt, Chief executive, Electrical Contractors’ Association
  • Harry Cotterell, President, Country Land Business Association
  • Julia Evans, Chief Executive, National Federation of Builders
  • Julia Goodwin, Editor, House Beautiful
  • Dr Noel James, Director, Historic Towns Forum
  • Andrew Leech, Executive Director, National Home Improvement Council
  • Dr Sean O’Reilly, Director, The Institute of Historic Building Conservation
  • Yvonne Orgill, Chief executive, Bathroom Manufacturers Association
  • Kate Pugh, Chief executive, The Heritage Alliance
  • Nigel Rees, Group chief executive, Glass and Glazing Federation
  • Edward Harley, President, Historic Houses Association