RICS WARNING TO LISTED BUILDING OWNERS,
With the introduction of VAT on listed buildings approaching, many owners are trying to complete alteration and restoration work to their properties to save thousands and secure the propertys future.
On 1 October 2012, the government is lifting the exemption on VAT to listed buildings, which it terms an ‘anomaly’, and imposing VAT at 20 per cent to all alterations and restorations in a move which will cost owners of listed buildings thousands of pounds just to ensure their property does not fall into disrepair.
Preservation of a listed building involves dedication in time and money due to the more expensive methods and materials required to maintain them. RICS, along with much of the property industry, fears that the extra 20 per cent levied against owners of these buildings will mean these essential works will no longer be financially viable.
As a result many owners of listed properties are rushing to complete works and ensure the survival of the building and Britain’s heritag
Stephen Thornton, RICS UK Head of External Affairs, said:
"The Chancellor has missed a golden opportunity to create a level playing field on all residential works.
"Research shows that five per cent VAT across the board would create 26,560 jobs in the construction sector with a total economic stimulus of around £1.7 billion in 2012 alone."
RICS’ view is being echoed throughout the property industry with many lending their voice to the condemnation surrounding the lifting of the VAT exemption.