§ Mr. WoodwardTo ask the Chancellor of the Exchequer if he will make a statement on churches' liability to pay VAT on repair work when situated within a designated conservation area. [18035]
§ Dawn PrimaroloRepair work to churches is liable to VAT at the standard rate. There are no special VAT rules for churches in designated conservation areas. However, the Government have introduced a UK-wide grant scheme, the effect of which will be to reduce the VAT cost to 5 per cent., for works of repair, maintenance and improvements to listed places of worship undertaken from 1 April 2001.