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Church improvements and VAT: New transitional arrangements

The Church of England today welcomed the announcement from HM Revenue and Customs that transitional arrangements for zero-rated VAT for alterations to cathedral and church buildings will be extended to cover all schemes which had already applied for a faculty or approval under the Care of Cathedrals Measure.

The end of the transitional period will also be extended until 30 September 2015, allowing qualifying projects to continue to benefit from zero rating for three and a half years, or four summers. This should ensure that the majority of qualifying projects under way at Budget Day, 21 March 2012, will qualify for transitional relief.

Anne Sloman, Chair of the Church Buildings Council said: 'We are delighted that alterations to church buildings which had already applied for a faculty that have been on hold since the Budget can now proceed, and we hope as many as possible will now be able to do so without further delay.'