VAT on refurbishments and extensions


There was a national campaign last year to raise awareness of the VAT burden that usually falls on charities when they refurbish or extend their community centre or hall. We encouraged you to lobby your MP and to tell us about the impact of this VAT burden on your organisation.

Opportunity for progress? Please share your stories!

We’ve just been told that ACRE have secured a meeting with the Exchequer Secretary to the Treasury, Robert Jenrick MP, to discuss the case for a VAT refund scheme. The more evidence and views ACRE has in advance of this meeting, the better – so please send us details of the impact that VAT has had on your building projects:

  • How much longer did your fundraising take due to the VAT bill?
  • What other improvements or services could you have carried out if you didn’t have to pay VAT?
  • How else has the VAT burden impacted your organisation?

Remember that parish councils managing community halls can normally reclaim the VAT on building projects. See this news item from last month for further details (scroll down to the ‘Building Works’ heading).

Given the positive news of ACRE’s meeting with the Treasury Minister, you might want to delay any decision on making major changes to your governance arrangements. Contact our Community Buildings Officer, Kevin Sawers, for more details – by email or on 01962 857358. Kevin can also send you a booklet on managing major building projects.

Note that our detailed guidance is only available to Action Hampshire member organisations. Applying for membership is free, so just check your status and sign up.