In the budget last month, the government announced its intention to remove the zero rate of VAT for approved alterations to listed buildings. This means that from 1st October 2012 the standard rate of VAT will apply to the alteration of a listed building.
As part of the Budget announcements, HMRC has opened a consultation on its proposal to eliminate key current VAT relief for heritage work linked to Listed Building Consent (LBC) from October 2012, with the consultation to close on 4 May.
HTF is pleased to join The Listed Property Owners Club and other organisations in supporting the Cut the VAT Campaign. We feel the decision to add 20% VAT to approved alterations of a listed building will have seriously negative consequences. Please see also the Director’s View which highlights the work of the Heritage Alliance in this area.
If you agree with this point of view, please contact your MP to ask them to urge the government to think again. You can do this via the "contact your MP" link on the Cut the VAT Campaign website. Please see also http://www.bath-preservation-trust.org.uk to support their approach.
The Listed Property Club are particularly keen to learn how owners will react to this further 20% increase and are asking property owners how they will be affected by this change. Please contact Peter Anslow on Tel: 01795 844939 and discuss whether you plan to try to find the extra money, reduce the specification or completely cancel your project?