This evening I shall be mostly analysing the VAT implications of changes in Budget 2004 for work and writing a newsletter thereon.
Don't expect much else from me today.
Very good news if you're repairing a church, I understand.
Erm. Yes and no.
The Chancellor has extended a scheme whereby churches can apply for a grant equal to the cost of the VAT on any repairs being undertaken (previously it was only 12.5% of the 17.5% VAT leaving churches 5% out of pocket).
However, this grant is paid out of English Heritage funds. EH has a finite amount it can pay in grants so these grants simply deprive other areas of money. It makes the Chancellor look good without costing the Govt any more money overall.
The EC has blocked UK moves to have a zero rate for repairs of this sort. If the Chancellor was truly committed to this cause he could still apply a 5% VAT rate to repairs though. However, that would cost the Govt. money overall.
