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VAT changes for listed buildings

A new way that VAT is charged on renovation projects of listed buildings is under fire by Labour politicians and by members of The Church. Approved alterations to listed buildings will now be liable to 20% VAT.

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  1. Juliet Bremner: ITV News Correspondent

Churches are the unintended victims of VAT changes

The Government claims its planned changes to the way VAT is charged on listed buildings is aimed at wealthy taxpayers - the sort of people who may want to install a swimming pool in their mansion, for example.

The problem is that they also managed to catch churches in the new rules, so work like installing disability ramps and community halls will become more expensive. Around two thirds of all listed buildings are churches.

This is, of course, the latest in a long line of negative headlines to come out of the Budget - from the 'granny tax' to the 'pasty tax'.

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