Should Listed Buildings Be VAT Exempt? | Glaze & Save

Listed buildings are a vital part of our built heritage, preserving the character, colour and charm of villages, towns and cities across the United Kingdom. While preservation of these buildings could well be thought of as a privilege, the cost for repair and conservation is often steep.

The typical image of a listed building owner is one of a wealthy type engaging in the conspicuous consumption dwelling in a lavish building. But with one in five buildings in the U.K being constructed pre-1919, and buildings as modern as the British Library in London, completed in 1997, receiving listed status numbers suggest that it is far more than the wealthy elites looking after these buildings.

According to the Federation of Master Builders half of the people who live in listed buildings are in the four socio-economic groups with the lowest income.

Given the importance and prevalence of listed buildings throughout the United Kingdom, coupled with the variability of financial means of the people dwelling in said buildings, it came as something of a blow to the listed building community of owners, conservators, builders and heritage experts when VAT was introduced on alternations and repairs to listed buildings in 2012.

Prior to 2012 the only financial aid given by central government to owners of listed buildings came via VAT. In simple terms, an alteration to a listed building for which listed building consent has been granted did not attract VAT.

This decision has received extensive criticism over the last six years, not least from the Listed Property Owners Club , who have campaigned to have the 20% VAT on listed building repairs reduced to 5%. Editor-in-chief Martin Anslow stated in the latest issue of Listed Property (July/August 2018) ,

“As owners of listed buildings we are the backbone of so much that is great about British heritage. We spend our time and money cherishing and protecting hundreds of thousands of these historic buildings that create the character and colour of our country. However, for too many owners the pleasure and pride they once had in their home is becoming a burden and a worry.”

In order to collect their efforts ahead of the November 2018 Budget, the LPOC launched a petition to call for a reduction in VAT to the 5% rate for essential and approved repairs to listed buildings, hoping to mobilise the 1.5million listed property owners in the country who want to make their voices heard.

The petition notes that “since 2012, The Listed Property Owners’ Club has noticed a distinct fall in certain types of applications for listed building consent”. The LPOC argue that reduction of VAT to 5% on repairs and approved alterations would provide an incentive for owners to maintain their homes and safely conserve historic and heritage buildings.

Without listed buildings or landscape would certainly be a much duller place, and it goes without saying that these buildings often require extensive maintenance and repair. We all enjoy the aesthetic and personality that these buildings bring to our country, in fact, many listed buildings, streets and whole villages are national treasures. Should VAT be reduced in order to reflect that social and environmental significance? It seems that a renewed focus on maintaining our built heritage, and making it easier and more affordable to do so, is in everyone’s best interests.

You can sign the Listed Property Owners Club’ petition here.

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