Asked by: Lord Bishop of Southwell and Nottingham (Bishops - Bishops)
Question to the Department for Digital, Culture, Media & Sport:
To ask His Majesty's Government what assessment they have made of the impact of the changes to the system for reclaiming VAT on listed places of worship on projects which have already signed a contract and where the work has begun, such as St Mary Magdalene Church in Newark.
Answered by Baroness Twycross - Baroness in Waiting (HM Household) (Whip)
Based on the Department’s analysis of previous data, 94% of applications between 2022-2024 have been under £25,000, and most of these claims were for under £5,000. We believe that the modifications were necessary and adequate given the tight fiscal challenges we inherited from the previous government.
We expect the cap will be applied to all claims received on or after 1 April 2025. We will provide published guidance on scheme applications and eligibility in due course.