Clergy Log In Church in Wales

VAT

Listed Places of Worship – Grant Scheme

From 1 April 2004 the Chancellor of the Exchequer agreed to a return in grant aid of all VAT on eligible repairs and maintenance work carried out after 1 April 2004.

Application forms for grant assistance, together with detailed information about the scheme can be obtained from the Listed Places of Worship Scheme website.

Zero-rated or Reduced-rated VAT

For buildings other than listed places of worship (for example, church halls or unlisted churches) some building works can be zero-rated, providing the building works are eligible (for example, new build or installation of a disabled toilet) and the building is used for a “relevant charitable purpose”.

Your VAT-registered builder should give you an invoice showing where the exemption has occurred.  They will need a certificate from you stating that you are a charity, and the building is used for charitable purposes.

The rules are complex and before issuing a certificate you should get copies of the relevant notices from HM Customs & Excise.