The government intends to go ahead with abolishing VAT relief on approved alterations to listed buildings. Currently such alterations are zero rated for VAT while repairs to historic buildings attract the full 20% rate.
The government intends to charge the 20% rate on approved alterations from 1st October 2012. There will be transitional arrangements, where Listed Building Consent has been applied for before 21 March 2012, then the zero rate will continue to apply until 30th September 2015.
For work where the application for listed building consent was not applied for until after 20th March 2012, but the work is currenly acutally being done, you must measure the work done on alterations up to the 1 October 2012, and that done after that date. Only the work done before 1 October can be zero rated.
There will also be dispensations for churches and other listed places of worship.