8 December 2014
Last updated at 13:43

English Heritage added 40 churches in north-west England to its list of sites in need of conservation, earlier this year

The UK Independence Party has announced plans to lower the VAT rate charged on the restoration of listed buildings.

The 20% tax on repairs and maintenance was introduced by Chancellor George Osborne in his 2012 Budget.

UKIP said it was “punitive and discriminatory” and promised to cut it to 5%.

The party’s heritage spokesman, William Cash, said the move was essential for maintaining Britain’s architectural heritage.

“Many buildings, from castles to cottages are crumbling away while the Treasury unfairly rewards developers of new buildings with zero VAT rates,” he said.

Old v new

According to the Listed Properties Owners Club (LPOC), there are:

• 374,081 listed buildings in England,
• 47,700 in Scotland
• 20,592 in Wales

Since 2012, the Treasury has charged VAT at 20% on approved alterations to listed buildings – work that was previously exempt from the tax.

The change applied to all listed buildings, including places of worship. The Church of England owns 45% of the Grade-1 listed buildings in the country.

There is no such tax on new constructions.

A Treasury official said at the time the change would correct “significant anomalies” and “align the alterations of listed buildings with the existing VAT treatment of alterations to other buildings and repairs of all buildings”.

But, on Monday, UKIP said the current level of tax charged on heritage repairs was the “most onerous” in Europe.

Mr Cash – UKIP prospective parliamentary candidate for North Warwickshire and son of Conservative MP Sir Bill Cash – said the 20% rate discriminated against not only the heritage tourism economy but also people who wanted to improve or repair their homes.

Please turn on JavaScript. Media requires JavaScript to play.

TV presenter Loyd Grossman makes the case for a tax cut for the restoration and repairs of older buildings

The party also said the tax had affected skilled British builders and other craftsmen, who had been “forced out of business” by larger contractors who employed cheaper labour.

Mr Cash said: “Our planning and tax policies should support – not discriminate against – the rich heritage of our built inheritance and the craftsmen and women who preserve it and those who share its custody with others and for future generations to also enjoy.

“The planning system should should be a fair balancing act between old and new”.

TV presenter and chairman of the Heritage Alliance Loyd Grossman has called for a tax cut for restoration and repairs of older buildings, saying the current system “just doesn’t make any sense”.

The Listed Properties Owners Club (LPOC) has also called on all political parties to permanently reduce to 5% the VAT charged on repairs and improvements to listed buildings in private ownership.