Budget 2004: VAT help for sacred buildings_2

The Chancellor announced in yesterday’s Budget that churches and other places of worship will have no VAT liability on repairs until March 2006.

Since 2000, 12.5 % of the VAT on such repairs has been covered by government grants, but this change means that the full cost of VAT on repair and maintenance will now be covered.

The UK government is still at odds with the EU over the legality of the scheme. In addition, some bodies have demanded to know why the Chancellor did not extend the concession to all...

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