VAT cap puts cathedral in 'unachievable' position

A new cap on the amount of VAT listed places of worship can claim on repairs makes an "incredible challenging" situation feel "almost unachievable", a cathedral boss has said.

Between now and the end of March 2026, cathedrals and other places of worship which are listed will only be able to claim up to £25,000 VAT per year.

Nerys Watts, chief operating officer of Wells Cathedral, told the BBC the change would add £8m to planned repair costs over the next 10 years.

"They [the buildings] have extensive repair needs, and they're a key part of our nation's heritage that we want to hand on to future generations", she said.

According to government data, 94% of claims should be unaffected by the change.

However Ms Watts said the cap will make a "really big difference".

Ms Watts said: "Historic buildings like these and historic churches are very expensive to maintain and look after.

"We don't want to lose them. So not having to pay VAT, saving that 20%, has been significant."

The cathedral is looking to fully repair its lead roofs which were constructed more than 100 years ago, a project which Ms Watts said will need "a lot of money".

Tessa Munt, MP for Wells and Mendip Hills, said she supports the schemes extension to March 2026 but added she is "worried" about the cost the cap could bring to places of worship.

"The daily cost of running the cathedral is absolutely staggering, but these are very beautiful places," she told the BBC.

"Taking the VAT out of the bill by allowing people to claim that would be very significant, it's going to mean a lot in some of our cathedrals in the country."

She wants the government to give "leniency" at the end of March 2026 to allow people who have completed the works to be able to claim the VAT after that date.

A spokesperson for the department for culture, media and sport said: "Listed places of worship provide a range of services to the public regardless of faith or background.

"Many of them are architecturally and historically significant.

"This is why the government has extended the Listed Places of Worship Grant Scheme until 31March 2026.

"It will continue to enable religious organisations to claim grants covering eligible VAT costs paid towards repairs and renovations."

It is unclear what will happen to the scheme beyond March 2026.

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