Cathedrals have raised considerations concerning the introduction of a brand new cap on the quantity of VAT that they and different listed locations of worship can declare.
Below the revised scheme, listed locations of worship will now be restricted to claiming as much as £25,000 in VAT per 12 months on repairs, efficient till the tip of March 2026.
Whereas authorities knowledge means that 94% of claims will stay unaffected by the change, cathedral leaders argue that the cap may have vital monetary repercussions for main restoration initiatives.
The transfer has been described as reworking an “extremely difficult” scenario into an “nearly unachievable” one, based on a cathedral official.
Nerys Watts, chief working officer of Wells Cathedral, warned that the restriction would have a “actually large distinction,” including an estimated £8 million to deliberate restore prices over the following decade.
The VAT cap comes because the cathedral is making ready for a expensive full-scale restoration of its centuries-old lead roofs.
Tessa Munt, MP for Wells and Mendip Hills, voiced her assist for extending the scheme till March 2026 however expressed concern over the monetary pressure the VAT cap may impose on non secular establishments.
She stated that whereas cathedrals are “very stunning locations”, they require substantial funding to keep up.
“Taking the VAT out of the invoice by permitting individuals to say it again can be very vital,” Munt stated.
“It’s going to imply rather a lot for a few of our cathedrals throughout the nation.”
She has urged the federal government to indicate “leniency” on the finish of March 2026 in order that VAT might be claimed past that date on any accomplished works.
A consultant from the Division for Tradition, Media, and Sport acknowledged the position of listed locations of worship in offering a spread of public providers and welcoming individuals of all faiths and backgrounds.
“Lots of them are architecturally and traditionally vital,” the consultant acknowledged.
Ms Watts echoed this sentiment, emphasising the significance of preserving historic buildings.
“Historic buildings like these and historic church buildings are very costly to keep up and take care of,” she stated.
“We don’t need to lose them. So not having to pay VAT and saving that 20% has been vital.”
She added, “They [the buildings] have in depth restore wants, and so they’re a key a part of our nation’s heritage that we need to move on to future generations.”
In recognition of the cultural and historic worth of those websites, the federal government has prolonged the Listed Locations of Worship Grant Scheme till March 31, 2026, permitting non secular organisations to proceed making use of for grants overlaying eligible VAT bills associated to repairs and renovations.
Nevertheless, the way forward for the scheme past March 2026 stays unsure, leaving many involved concerning the monetary feasibility of preserving these historic locations of worship.
