SAVE Britain's Heritage has attacked the proposed abolition of zero-rated VAT relief for approved alterations to listed dwellings and other building types as 'poorly considered, nonsensical and potentially hugely damaging to the historic environment'.
'This change makes no sense' says SAVE Secretary, William Palin, 'Far from correcting an anomaly it serves only to accentuate the bias in the tax system against historic buildings and refurbishment in general. Many alterations to historic buildings are an essential part of keeping them alive - replacing aging or dangerous wiring, installing new plumbing, heating or adding a much needed extra bathroom. In discouraging this, the new VAT rules are clearly out of kilter with wider government policy, both on heritage, and sustainability.’
'SAVE has long argued that the current VAT arrangements which favour alterations over repair are not ideal. However, clearly the sensible option for correcting this would be to equalise the VAT at a low level - otherwise the Treasury is simply adding another deterrent to individuals and charities wishing to take on, rejuvenate and sustain listed dwellings and places of worship. If the current system is a headache for HMRC then surely what is needed is a consultation on how the system should be improved. Until a sensible solution is found, the zero-rating for alterations should be left in place.’
SAVE’s President, Marcus Binney, says ‘George Osborne is not just hammering Britain’s great cathedrals and stately homes, he is penalising thousands of ordinary homes which are in urgent need of improvement and repair. By abolishing VAT relief on listed buildings, the Chancellor is foisting new burdens on to house owners, small builders, housing associations, congregations and building preservation trusts – the foot soldiers in the never-ending slog to retain and enhance the character of cities towns and villages.’
‘The present crisis precipitated by the budget has all the signs of being cooked up by a few officials in HMRC who wanted to rid themselves of what they regarded as a contentious area of taxation - which consumes a disproportionate amount of time in enquiries and disputes. But even if this is true it doesn’t make the current regime ‘anomalous’ – it just underlines how badly the relief is needed. It seems that ministers have had cost and revenue as their only criteria and have had no regard for the dreadful repercussions of this change on almost everyone looking after, caring for or simply using an old building as part of daily life.’
NOTES TO EDITORS
For further information please contact William Palin on 020 7253 3500 or email [email protected]
