Grants and VAT
Q. Do I have to pay VAT on repairs on my listed building?
A. Yes. VAT is payable on repairs to all buildings. But if your building is listed, you may not have to pay it
on approved alterations. The rules are complicated and may depend on local interpretation by your Customs
and Excise office. The basic principle is that approved alterations for which
you have been given listed building consent do not attract VAT. In practice there
are grey areas, not least because of the differing judgments by local planning
authorities on what may or may not require listed building consent.
This is the wrong way round, but repeated efforts by the SPAB and other conservation
bodies to persuade the Government to remove or reduce VAT on repairs to listed
buildings have so far failed. However there is currently a grant scheme for Listed Places of Worship that in effect reduces the rate of VAT on repairs to 5%.
Q. How do I apply to the SPAB for a grant?
A. The SPAB is not a grant giving body. Indeed it relies on fundraising itself,
and any donations would be most welcome. The Society does have one or two small
funds for specific purposes, the significant ones being The Thomas Hardy Memorial
Fund for repairs to buildings associated with him, particularly in Dorset; and
the Misses Newcombe Bequest for repairs to almshouses in use. If you have a project
that might be eligible from either of these specific funds, please write to the
SPAB for an application form and further details.
Q. How do I find out about grants for a listed building?
A. Grants for repairs to listed buildings are increasingly hard to find as money
for them is extremely short. Do not rely on obtaining one. This is specially true
for newly acquired buildings, where generally the grant making body will assume
that the purchase price took into account the cost of any necessary repair and
modernisation works. Policies may vary slightly in different countries of the
UK, but are broadly similar. For private owners the main possibilities are:
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English Heritage (or equivalent). EH can grant aid "outstanding" buildings, which in effect means those that are listed Grade I or Grade II*, but not Grade II buildings outside conservation areas. Current priorites vary between regions but a particualar concern is for buildings at risk Cadw, Historic Scotland and the Department of the Environment (Northern Ireland) have their own grant schemes.
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Local Authority Historic Building Grants. Local authorities have the power to offer grants for listed buildings, including Grade IIs, but in reality few have the money. For example, the total annual budget for an entire area might be only £10,000. It is worth enquiring, but do not hold out hopes. Even if you are lucky, any grant you get will be small.
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Local Authority House Renovation Grants. These are not specially directed at historic buildings, and are generally designed to bring dwellings up to an acceptable modern standard of hygiene and safety. They are therefore normally only relevant if the building is severely neglected. They can help rescue an historic building, but beware. They may well come with standard modernisation requirements that are unsuitable for an old building.
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Heritage Lottery Fund. The HLF cannot normally help private owners, though it can assist Building Preservation Trusts in the rescue of a building that eventually passes into private ownership.
Further Information
The Architectural Heritage Fund has launced a web-based directory of funds for
historic buildings www.ffhb.org.uk
Various VAT notices and Information Sheets, available on HM Revenue & Customs
website: www.hmrc.gov.uk
Please note: the SPAB cannot give tax advice.