Threat to reduced rate VAT

Shrinking the Footprint has issued the following briefing which will be of interest to any churches currently in receipt of reduced rate VAT or contemplating taking advantage of it.

"Help fight the removal of reduced rate VAT on church energy saving measures

In this year's budget the Government suggested a removal of reduced rate VAT on Energy Saving Materials (such as heat pumps, themostat controls, insulation and solar panels) on charitable buildings in 2013 (probably 1st August). The EU has now told the Government to remove reduced rate VAT on Energy Saving Materials on all buildings but this is being challenged - see the HMRC briefing at http://www.hmrc.gov.uk/briefs/vat/brief2612.htm.

However the reduced rate on charitable buildings looks likely to be conceded. HMRC are consulting until 20th October - for details see the bottom of the HMRC briefing page quoted above. Please try and respond and encourage others. It is important to show that we care about the damage this does to the congregations trying to green their church buildings.

Shrinking the Footprint has signed a joint letter (copy at: http://www.churchcare.co.uk/images/oliver_letwin_letter.pdf) objecting to the EU ruling and are working to be heard but we need your help to show that this reduced rate on charitable buildings is worth keeping"