20% VAT is payable on extensions and refurbishments by churches (and other bodies) which are being undertaken for local communities, many in deprived areas and the amount taken from any funds raised by the churches makes it, in a lot if instances, difficult to carry out all the work required.
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Our church in Denton undertook a refurbishment in 2005 which brought many people & groups into the church & its premises, at a time when councils were closing facilities. Churches help by housing groups that otherwise would have to close, or at least restrict the work that they do. This type of includes working with various health groups, places for the young and old to meet, and much more. We are looking at a £1,000,000 project which incurs £200k in tax, this mean much of it will not be done.