Buildings: VAT
The question
To ask the Chancellor of the Exchequer, what consideration he has given to (a) reducing and (b) zero-rating VAT on building renovations for charitable, heritage and community culture use.
Answered by Treasury
VAT is a broad-based tax on consumption and the standard rate of 20 per cent applies to most goods and services, including most construction works.
The Government currently maintains a zero rate of VAT on the construction of new buildings that will be used solely for a relevant charitable purpose, including village halls. Further information can be found here: Buildings and construction (VAT Notice 708) - GOV.UK
More widely, the Department for Digital, Culture, Media and Sport administer the Places of Worship Renewal Fund which will allocate £92m to support the upkeep to places of worship over four years. The Fund provides upfront capital grants to enable essential capital works for buildings in greatest need.
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