Listed building owners get to work before VAT switch

OWNERS of listed buildings are facing a race against time to complete alteration and restoration work ahead of the VAT exemption being lifted.

From the start of October, the Government will charge 20 per cent VAT on renovations at historic buildings.

Under the current scheme, VAT is charged on repairs and maintenance to listed properties, but not on alterations.

However, the new ruling will not impact all construction projects, with those which applied for listed building consent before March 21 exempt until September 2015.

Brian Shaw, from the Royal Institute of Chartered Surveyors, said: “Listed buildings are some of Scotland’s greatest assets and their preservation involves dedication in time and money.

“Removing the VAT exemption on alterations will have a significant impact on potential investors and current owners who may be unable to foot the extra expenditure.”