Churches now subject to VAT on all repairs

Breaking news

On the 22 January 2026, the UK Government confirmed the end of Listed Places of Worship Grant Scheme. It will be replaced by a £92 million grant scheme called the Places of Worship Renewal Fund. We welcome the funding, but there's a catch. Churches will now have to pay tax.

Here is our initial response to the end of the scheme and the new funding that has been announced:

Sir Philip Rutnam, Chair of the National Churches Trust, said:

“We welcome the announcement of a new capital funding scheme for the country’s religious heritage. We have been campaigning for this for some time, and we look forward to understanding how the new scheme will operate. Churches depend overwhelmingly on volunteers so the scheme will need to be simple, accessible and predictable if it is to be a success.”

“However we are very concerned that in future listed places of worship will have to bear the full cost of VAT on repairs. This brings to an end a system that has operated successfully for over 20 years. It means that in future local people will have to raise money not just to repair roofs and towers but to pay a 20% tax to the Government.”

“Museums and galleries offering free admission don’t have to pay VAT on repairs, but in future churches will. We call on the Government to end this unfairness and not to expect local volunteers to pay these extra taxes.”

You can read the Government's announcement in full here.

We will update this page once we know more.