The Heritage Alliance (THA) has issued an update on its discussions with the Treasury, including highlighting the benefits of cutting VAT on repairs etc., which relies on an evidence base co-funded by the IHBC and developed by Experian.
The Heritage Alliance writes:
Following the release of our Heritage Manifesto, the Chancellor, Phillip Hammond, invited us to meet with Treasury officials to discuss VAT. That manifesto sought to realise the power of heritage by calling on all political parties to:
- Maximise the advantages, and minimise the disadvantages, of Brexit for heritage;
- Maintain and improve the protection for heritage;
- Attract more investment and engagement in heritage, and build sector skills and capacity;
- Effect positive fiscal change for heritage;
- Continue to back Lottery funding for heritage.
We had a useful discussion flagging our response to the Office of Tax Simplification on how VAT can be simplified to benefit the heritage sector.
We also pointed them to the high-quality research from the Cut the VAT campaign showing the benefits of a reduction of VAT to 5% across the board. The Cut the VAT Campaign Coalition is an alliance of more than 60 charities, trade associations, business groups and financial institutions that are urging all mainstream political parties to include a 2015 General Election manifesto commitment to reduce VAT on housing renovation and repair work from 20% to 5%. This new independent research report from Experian demonstrates that a targeted reduction in VAT from 2015 to 2020 – that is the lifetime of the next Parliament – could bring with it a number of tangible economic, social and environmental benefits.
We expressed a wish to work closely with the Treasury and hope to have further dialogue on the kind the work we are doing to devise pilot schemes – perhaps, for example, refunding VAT as a grant in Heritage Action Zones….
See the IHBC’s most recent VAT Research Note on our Toolbox
For more background on the IHBC’s advocacy on VAT see the IHBC Newsblogs (Link 1) and (Link 2)
Co-funded by the IHBC, The Experian report (December 2011) – The effects of a reduction in the rate of VAT on the labour element of housing repair, maintenance and improvement is available for DOWNLOAD
