HC Deb 09 February 2004 vol 417 cc1297-8W
Miss McIntosh

To ask the hon. Member for Middlesbrough, representing the Church Commissioners whether a Church of England cathedral entering into bankruptcy can reclaim VAT paid on church repairs. [152995]

Sir Stuart Bell

Under the Listed Places of Worship grant scheme—whose extension until March 2006 the Church of England and other UK faith groups welcome—listed churches and cathedrals can recover the equivalent of 12.5 per cent. on the cost of repairs carried out to those buildings after April 2001, in effect reducing the VAT burden to 5 per cent. The grant scheme makes no special provision in respect of bankruptcy.

On the question of the interaction of the bankruptcy laws and the law relating to charitable corporations such as cathedrals, I refer the hon. Lady to the answer I gave to the hon. Member for the City of York (Mr. Bayley) on 2 February 2004.