§ Mr. Laurence RobertsonTo ask the Chancellor of the Exchequer (1) if he will make a statement on the implementation of existing VAT Directives relating to the care of listed places of worship; [149491]
(2) what fiscal incentives his Department provides to support the maintenance of historic buildings; what plans he has to increase this support and if he will make a statement. [149490]
§ John HealeyIn accordance with the rules laid down in the EC Sixth VAT Directive, the repair and maintenance of listed places of worship, and of all other buildings, is standard-rated for VAT purposes.
We have been negotiating hard with our European Partners to extend the categories of permitted reduced VAT rates to include the repair and maintenance of listed places of worship. Although at this time the future of these negotiations is uncertain, it remains one of the Government's objectives to achieve such a reduced rate.
In the meantime we continue to provide support through the Listed Places of Worship Grant Scheme, which provides an equivalent reduction in the cost of these repair projects. In his Pre-Budget Report the Chancellor announced that funding for the grant scheme is in place for a further two years, until the end of March 2006.
As well as the Listed Places of Worship Grant Scheme, the Government provides a range of fiscal incentives to support the maintenance of historic buildings, including exemption from inheritance tax for heritage maintenance funds. The Government keeps all taxes under review and any changes are considered by my right hon. Friend the Chancellor of the Exchequer as part of the annual Budget process.