Question to the HM Treasury:

To ask the Chancellor of the Exchequer, for what reason repairs and maintenance are treated differently for VAT purposes for (a) places of worship and (b) museums and art galleries.

Construction repair and remedial works to all buildings are charged at the standard rate of VAT, this includes places of worship and museums/art galleries.

Previously major alterations to listed buildings were zero-rated, including places of worship. Since 2012, alteration works to a protected building are standard rated for VAT. Details are set out in HMRC guidance, available on GOV.UK: https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section9

Some museums and galleries receive VAT refunds on the costs associated with providing free access to their permanent collections, under the museums and galleries VAT Refund Scheme. More information can be found at VAT Refund Scheme for museums and galleries (VAT Notice 998) - GOV.UK

The Listed Places of Worship Grant Scheme provides grants for VAT paid by listed places of worship on their repair and maintenance costs, with the objective of helping to preserve UK heritage. From April 2026 the scheme will be replaced by a Places of Worship Renewal Fund, which will invest £92 million capital funding into listed places of worship. It is designed to ensure that taxpayer funding is targeted more effectively toward the preservation of our heritage assets.