In Issue 206 we highlighted alarm that changes to the rate of VAT payable on alterations to listed buildings would put historic structures in Edinburgh at risk.
Mark Lazarowicz, MP – one of several local figures who raised this issue – has now received a response from the Treasury minister which appears below.
In brief, David Gauke, Exchequer Secretary to the Treasury, asserts that repairs to and maintenance of all buildings (including listed ones) have always been VAT liable and will remain so.
The proposed changes, he says, relate to alterations to listed buildings (which Lazarowicz argues 'can be essential to enable them to continue as living buildings and to open them out to wider community use'). These changes are intended to remove confusion and error relating to the distinction between repair/maintenance and alteration.
Gauke says the Government is 'committed to ensuring that listed places of worship are not adversely affected by the Budget proposal'. There are indications that increased funds may be made available for the UK-wide Listed Places of Worship scheme, which could be used to meet the newly applicable VAT payments.
A two-week extension of the consultation period has been granted, but Lazarowicz is guardedly pessimistic: '... unfortunately it looks as if the Government has made up its mind on this issue'.