
Would a VAT Rebate Help Repair Scotland's Historic Buildings?
Our Director of Heritage Elizabeth McCrone explains why we commissioned research on VAT and what the findings were.
Ever since I’ve been in the heritage sector the issue of VAT and listed buildings has been a hot topic. I’ve often wondered if it really is the answer to keeping our listed buildings looked after.
There are over 45,000 listed buildings in Scotland and they are a hugely important part of our heritage and our story. They're not just castles and country houses, but include tenements, schools, factories, bridges and a whole host of much-loved structures.
Most repair, renovation and improvement work to existing buildings is subject to 20% VAT, with certain exceptions.
Work on new buildings is zero-rated for VAT. There is, therefore, a financial incentive to build new, rather than reuse existing buildings.
Within the context of a climate emergency and a cost-of-living crisis, we commissioned Harlow Consulting to find out how much a rebate on works to listed buildings would cost, and how much the issue of VAT impacts on the maintenance and reuse of listed buildings.
While Scottish Ministers support the removal of VAT on works to listed buildings, VAT is not a devolved matter, so we can’t change the way it is charged in Scotland. But we asked our consultants to consider whether other options such as a rebate scheme might work.
A simple solution?
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