Listed Buildings: VAT
Church Commissioners

Andrew Gwynne (Denton and Reddish, Labour)

To ask the hon. Member for Banbury, representing the Church Commissioners, what assessment the Church Commissioners have made of the effect on churches in Denton and Reddish constituency of the imposition of VAT on alterations to listed buildings.

Tony Baldry (Second Church Estates Commissioner; Banbury, Conservative)

Within the constituency of Denton and Reddish, which spans the Diocese of Manchester and Chester, the Church Commissioners are aware of only one Parish which is in the process of applying for a faculty licence, this is the Parish of St Lawrence, Denton. The project is proposing the internal renovation and reordering, replacement of the drainage system and various architectural restorations to the II* listed church. The project is yet to receive final approval and currently has an estimated cost of £500,000 the majority of which would have been subject to 0% VAT.

Since the announcement from the Chancellor of the Exchequer on 17 May 2012 regarding the future extension of the Listed Places of Worship Grant Scheme (LPWGS), the Church Commissioners believe that the parts of the project which would have previously been eligible for 0% VAT will now be able to apply for funds from the LPWGS which has been extended to cover alterations, repairs and maintenance, with an extra £30 million being ring fenced by the Treasury to support the scheme. We anticipate that these and other future projects will be able to reclaim the full rate of VAT levied on any project of this kind.