Question

To ask the Member for South West Bedfordshire, representing the Church Commissioners, whether the Church has made representations to the Chancellor of the Exchequer on VAT relief for the upkeep of (a) newer and (b) all church buildings.

The most recent discussions between the National Church Institutions and the Treasury about VAT on building repairs took place in 2021-2022 around the regular review of the Listed Places of Worship Grant Scheme.

Representations were also made in 2022 by the Cathedral and Church Buildings Division of the National Church Institutions to the Secretary of State for Brexit Opportunities suggesting that VAT on repair and restoration of religious buildings be zero-rated as part of the review of EU legislation. This request was supported by the Historic Building Alliance and the wider sector. The Brexit Opportunities Department declined to take the suggestion further at the time.

The Church of England is grateful to the Treasury for continuing the Listed Places of Worship Grant Scheme while the post-Brexit tax arrangements are bedding in as this gives certainty to churches undertaking repair and building work.

More information about the scheme can be found here: https://listed-places-of-worship-grant.dcms.gov.uk/