Buried within the Budget was a decision by the Chancellor to introduce VAT to the cost of approved alterations of listed buildings, ”to reduce anomalies” by aligning with the existing VAT treatment of repairs and maintenance. This means from 1 October 2012 approved alterations to listed buildings will be subject to VAT at 20 per cent.
In the Telegraph this morning (22 March 2012) our Chairman Loyd Grossman OBE FSA commented: “The very real fear is that this will discourage people from making improvements to listed buildings. It may make the difference between them having a future and losing them altogether. Previously the Treasury has never accepted that VAT was a single issue that could change development decisions, but this change may have the power to really influence decisions. I think it may prevent buildings from being altered in a way that gives them a sustainable future. Without mods cons such as kitchens, loos and disabled access, how can these buildings be adapted to modern use and earn their keep?” Read the full Telegraph article here.
What do you think? Please let us know your thoughts: email@example.com – we’re keen to gather opinion from the sector to inform our representations to Government. And please respond to the consultation, which is open until 18 May: here.