Question to the HM Treasury:

To ask His Majesty's Government what plans they have to reduce the level of value added tax applied to repairs and renovations on churches, historic buildings and residential homes.

To stimulate the construction of new homes, the Government currently maintains a zero rate of VAT on new-build residential buildings. Additionally, residential renovations are subject to a reduced rate of VAT of five per cent if they meet certain conditions. These include conversions of buildings from one residential use to another, conversions from commercial to residential use, and the renovation of properties that have been empty for two or more years.

To preserve heritage, restorative work carried out on listed buildings previously benefited from a zero rate of VAT. However, this relief was abolished in 2012, as it was primarily used to carry out extension work unnecessary for heritage purposes. Withdrawing this relief simplified VAT rules and also removed the scope for error when categorising construction work as either alteration or repair.

The Department for Culture, Media and Sport also administer a Listed Places of Worship Grant Scheme. This provides grants towards VAT paid on repairs and maintenance to the nation's listed places of worship.