VAT Experts at Cowgill Holloway are warning owners of listed buildings across Bolton that repairing their properties may prove costlier than radically altering them.

Repairs to listed buildings are currently subject to the standard VAT rate of 17.5 per cent, whilst approved alterations to listed buildings which are designed for residential or non-business charity purposes, as well as those that are being converted to such use, are VAT-free as long as the work is done by a VAT registered builder and with listed building consent.

Carolyn Van Hecke, senior VAT manager at Cowgill Holloway, said: “The VAT liability of repairs and alterations to listed buildings is complicated and quite surprising as you would expect the organisations which monitor these buildings to want them to be sympathetically repaired to preserve their original state instead of them being altered significantly.

“However, Her Majesty's Revenue and Customs (HMRC) seems to be pushing people who own listed buildings into altering the building and its fittings in order to save money.

“Many people who own listed buildings will be unaware that they are being penalised for restoring properties to their original state and that they would be better off financially making wholesale changes to the property.

“Anyone embarking on a project of this nature should seek specialist advice at an early stage to ensure that potential VAT savings are maximised. This is an area fraught with difficulty and the legislation contains no general guidance on the borderline between alteration or repair and maintenance.”

There are currently about 500,000 listed buildings registered in England and one million in the whole of Britain, the largest number in Western Europe. Over the last 25 years the number of listed buildings has increased five fold.

In England, listed buildings are divided into three categories. Grade I buildings, which are defined as being of 'exceptional interest', constitute less than 2 per cent of entries on the list. Grade II* buildings are particularly important properties with more than special interest. They make up 4 per cent of the list. The biggest category is Grade II properties which are of special interest, warranting every effort to preserve them.

-Ends-

Latest news: Freshfield ranked second in North West guide to PR companies. Read more here www.freshfield.com/news.cfm

With offices in Preston and Manchester, Freshfield is an independent public relations, design, new media and marketing agency. For an insight into our company, our ethos, our services, our people and our work, visit our website.

For further information, please contact:

Claire Terry, Senior PR Account Executive Freshfield Tel: 01772 888400 Email: claire@freshfield.com