Religious
organisations
LATEST NEWS – Listed Places of Worship Announcement
It has this morning (22nd January 2025) been announced that the Listed Place of Worship grant scheme, which has historically covered the cost of the VAT on works to places of worship, will be renewed for a further 12 months to 31 March 2026.
However, in a significant change to the existing arrangement, claims will be capped at £25,000 for a place of worship in the coming year. Whilst there is relief that the scheme has been extended and an estimated 94% of claims last year would have been paid in full, there remains some uncertainty for projects extending beyond 31 March 2026 and where the VAT to be incurred will exceed £25,000. There is of course time for the Department for Digital, Culture, Media and Sport to amend the position but at this time it appears unlikely given the statement rather than consultation.
We would be pleased to discuss what this means for any projects you or your clients are involved in, to enable you to make decisions about the viability of the project. Get in touch.
VAT is an important and sometimes incredibly complex aspect of your finances. It will impact every organisation in some way and Churches or registered charities connected to religious organisations are no different. There are four main areas Church and faith based organisations should be aware of:
- Church or religious organisation building projects and property acquisition
- Requirements for VAT registration
- Church VAT recovery
- Obtaining VAT reliefs
We can help you with advice on the obligations and any opportunities that are available to you. This includes any implications of new activities run in your Church building, obtain VAT relief on purchases and construction of new Church buildings and help you financially structure any church building project to maximise tax relief opportunities. With our sector experience, and length of service in the industry, our expertise and advice will be invaluable.
Recent work in the faith sector
Change of use exposure
A faith based not for profit organisation came to us with a property VAT issue and our help avoided them having an unexpected £1.9million VAT cost.