cathedrals places of worship VAT repairs

Cathedrals have raised concerns in regards to the introduction of a latest cap on the quantity of VAT that they and other listed places of worship can claim. 

Under the revised scheme, listed places of worship will now be limited to claiming as much as £25,000 in VAT per yr on repairs, effective until the top of March 2026. 

While government data suggests that 94% of claims will remain unaffected by the change, cathedral leaders argue that the cap may have significant financial repercussions for major restoration projects.

The move has been described as transforming an “incredibly difficult” situation into an “almost unachievable” one, in accordance with a cathedral official.

Nerys Watts, chief operating officer of Wells Cathedral, warned that the restriction would have a “really big difference,” adding an estimated £8 million to planned repair costs over the following decade. 

The VAT cap comes because the cathedral is preparing for a costly full-scale restoration of its centuries-old lead roofs.

 Tessa Munt, MP for Wells and Mendip Hills, voiced her support for extending the scheme until March 2026 but expressed concern over the financial strain the VAT cap could impose on religious institutions. 

She said that while cathedrals are “very beautiful places”, they require substantial funding to take care of.

“Taking the VAT out of the bill by allowing people to assert it back can be very significant,” Munt said. 

“It’s going to mean rather a lot for a few of our cathedrals across the country.” 

She has urged the federal government to indicate “leniency” at the top of March 2026 in order that VAT will be claimed beyond that date on any accomplished works.

A representative from the Department for Culture, Media, and Sport acknowledged the role of listed places of worship in providing a variety of public services and welcoming people of all faiths and backgrounds. 

“Many of them are architecturally and historically significant,” the representative stated.

Ms Watts echoed this sentiment, emphasising the importance of preserving historic buildings. 

“Historic buildings like these and historic churches are very expensive to take care of and take care of,” she said. 

“We don’t wish to lose them. So not having to pay VAT and saving that 20% has been significant.” 

She added, “They [the buildings] have extensive repair needs, they usually’re a key a part of our nation’s heritage that we wish to pass on to future generations.” 

In recognition of the cultural and historical value of those sites, the federal government has prolonged the Listed Places of Worship Grant Scheme until March 31, 2026, allowing religious organisations to proceed applying for grants covering eligible VAT expenses related to repairs and renovations.

However, the long run of the scheme beyond March 2026 stays uncertain, leaving many concerned in regards to the financial feasibility of preserving these historic places of worship.