A petition which aims to save the Church of England £20m per year by reinstating zero-rated VAT on alterations to listed buildings used as places of worship has raised more than 10,000 signatures.
The government e-petition, used to lobby government to debate issues in Parliament, was opened on 30 March and has so far attracted 10,349 signatures. Started by the Church of England itself, it calls for the government to create an exemption for places of worship from the recent VAT changes announced in the Budget that removed zero-rated VAT from alterations to all listed buildings.
The Church of England is responsible for 45 per cent of all grade 1 listed buildings in the country. The majority of its buildings - 12,500 out of 16,000 - are listed. Many are undergoing alterations to make them more accessible to a wider community, such as adding toilet facilities, kitchens and disabled access.
Under the government's new VAT rules all alterations currently underway would not be eligible for zero-rated VAT and the Church of England believes that the change will cost it around £20m a year.
The petition was set up following the launch of a consultation by HMRC on VAT charging to approved alterations to listed buildings which closes on 4 May. Here the government states that the need for the VAT change is to disincentivise "change as opposed to repair" as repair works are subject to standard rate VAT. "Removing the zero rate removes the perverse incentive to change listed buildings rather than repair them and ensures that all alteration work receives the same tax treatment," the consultation reads.
While the government has agreed to extend the Listed Places of Worship Grant Scheme which was previously only given the go-ahead until 2014, without additional funds, the extension "merely means a shrinking pot will be stretched even further", the Church of England's petition states.
The e-petition will close on 30 June. If it receives over 100,000 signatures it will be eligible for debate in Parliament.
You can learn more about the e-petition and lend your support by clicking here.
