Overview

This bill proposes to exempt repairs to listed places of worship from Value Added Tax (VAT) in the UK. This aims to reduce the financial burden on religious organizations maintaining these historic buildings.

Description

The bill amends the Value Added Tax Act 1994. It introduces a new exemption (Group 17) within Schedule 9, specifically for the supply of building materials and services related to the repair of listed places of worship. The definition of "listed place of worship" includes buildings listed by the relevant historical preservation agency for each nation: Historic England (England), Historic Environment Scotland (Scotland), Cadw (Wales), and the Historic Environment Division in the Department for Communities (Northern Ireland). The definition of "building materials" aligns with existing definitions within the Act. The bill's provisions will extend to the whole of the UK and come into effect upon being passed.

Government Spending

The bill is expected to reduce government revenue as VAT will no longer be collected on repairs to listed places of worship. The precise financial impact is not stated in the bill text itself and would depend on the volume of such repairs undertaken.

Groups Affected

• Religious Organizations: Will benefit from reduced costs associated with maintaining their listed buildings. This could potentially impact their ability to fund other activities or projects.
• Contractors/Suppliers: Involved in the repair of listed places of worship will see a reduction in the price they can charge (excluding VAT). They might adjust their pricing models and potentially increase volume.
• UK Government: Will experience a decrease in VAT revenue.
• Taxpayers: The cost of the VAT exemption will ultimately be borne by UK taxpayers as a whole.

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