The UK government announced a £92m Places of Worship Renewal Fund on 22 Jan 2026, replacing the £23m Listed Places of Worship Grant Scheme that had allowed churches to reclaim VAT on repairs. The new fund removes VAT relief, meaning churches will now have to pay the standard 20% VAT on repairs, with the previous scheme having capped VAT‑exempt repairs at £25,000. The move aims to align churches with other heritage assets but raises concerns about the financial burden on congregations.
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Key Takeaways
The £92m Places of Worship Renewal Fund, announced on 22 Jan 2026, replaces the £23m Listed Places of Worship Grant Scheme.
Churches will no longer be able to reclaim VAT on repairs; they will have to pay the standard 20% VAT.
The cap was £25,000 per repair.
It had been in operation since 2001.
Primary source
Read the full article at ReutersThis summary was published on VATfaqs.com on 23 January 2026. It relates to VAT developments in United Kingdom. The original source is Reuters.
