Methodist Church welcomes the Chancellor's statement on VAT

Chancellor Gordon Brown announced in today's budget that until March 2006 churches and sacred places will be able to reclaim all VAT on repairs.

The Chancellor justified the move by saying: "Churches and sacred places are not just an essential part of our religious life but an important part of the history and the fabric of our country".

Alan Pimlott, Connexional Property Secretary for the Methodist Church, explained: "Under the Worship Grant Scheme listed church buildings are eligible for grants equivalent to 12.5% of the VAT on repairs, but the Chancellor's budget report indicates that with effect from 1 April 2004 all VAT on listed building works is eligible for grant"

On the direct implications for the Methodist Church he said: "The Methodist Property Office gave approval to 140 projects for listed chapels last year, with a total cost of around £5m. Additional grants are therefore likely to make available a further £250,000 a year towards Methodist property schemes".


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