An unexpected announcement in the Budget was that the zero rate of VAT on alterations to listed buildings is being withdrawn with effect from 1 October.

The Chancellor described the relief as an ‘anomaly’, which “gives a perverse incentive for change as opposed to repair”.

He also considers that the majority of the work covered by the relief consists of “extension work, which is not necessary for heritage”.

Admittedly, extensions currently qualify for VAT relief, but that does not give a true picture of the type of work owners of listed properties carry out, says the Listed Property Owners Club (LPOC).

Dave Brown, the LPOC’s VAT adviser, says: “The majority of projects that I get involved with are simply restoration jobs – and with VAT at 20% being payable on these works in future, home owners are likely to ‘make do and mend’ or else purchase non-listed buildings next time. The end result, unfortunately, is that many historic buildings will simply fall into a state of disrepair.

“Listed property owners have a hard enough time looking after the often fragile state of their homes that any disincentive introduced will, in the long-term, damage the heritage of the United Kingdom.”

The Government is consulting on the proposal and the LPOC invites members and anyone else with an interest to send a comment to HMRC at david.roberts4@hmrc.gsi.gov.uk.

Dave Brown also suggests writing to MPs and says: “This measure deserves the widest possible reaction and we urge you to contact your MP as soon as possible.”

He would also be happy to receive comments that he might be able to use in the LPOC's submission. They should be sent to info@lpoc.co.uk