Funds for Historic Buildings

The Chancellor of the Exchequer announced the Memorials Grant Scheme in the March 2005 Budget. The scheme is aimed at charities, but religious groups that are exempted from registering as charities are also eligible. The scheme will return in grant aid the amount of VAT incurred in the construction, renovation and maintenance of memorials on or after 16th March 2005.

The refund scheme parallels the related Listed Places of Worship Grant Scheme; it applies to memorials in the form of statues, monuments and similar constructions.

The Government has made proposals to the European Commission for a permanent reduced VAT rate to be charged on memorial construction, renovation and maintenance. The Memorials Grant Scheme is a temporary measure. It will operate until 2011 unless agreement is reached sooner on a permanent reduced rate.

The scheme is being administered by DCMS for the whole of the United Kingdom.

The scheme is restricted to charities and religious groups exempted from registering as charities.  Full charity registration details must be provided where applicable.  All such applications will be checked against the charities registration database as part of the checking procedures.  If the details provided cannot be verified, the application will be returned.

Religious groups exempted from charitable registration must provide full address details for clarification.

The scheme:
•  applies only to charities and religious groups exempted from registering as charities;
•  applies only to the construction, renovation and maintenance of memorials;
•  applies solely to structures;
•  applies only to memorials bearing an inscription or plaque commemorating a person, animal or event;
•  applies only to memorials that have at least 30 hours public access per week, even if there is an entrance charge involved, or a key needs to be obtained from a keyholder;
•  applies to memorials both in the UK and overseas on which UK VAT has been incurred;
•  covers work on or after 16th March 2005;
•  only accepts applications made in arrears.

Eligible work includes: Stone cross; Monolith; Plaques; Statues; Stained glass windows; Minor landscaping, including design (alongside memorial or in the course of the memorial construction); Removal of graffiti; Cleaning; Decoration / repainting; Professional fees (architects, surveyors, planning supervisors, H&S advisors, archaeologists, professional fundraisers) - all must relate to eligible repairs.

Ineligible work includes: Bench / seat; Book; Portrait; Concert / event; Tree; Garden; Memorial buildings (e.g. Library, village hall); Memorials located in non-public areas of civic buildings; Materials alone (no work completed by VAT contractor); Professional fees (lawyers, solicitors, accountants). Also any professional fees that relate to inelgible works; Grave markers / headstones / mausolea; Memorials without public access.

The eligible work must be carried out by a VAT registered contractor.  Claims cannot be made for materials alone, they must be incorporated into the fabric by a registered VAT contractor.

Most memorials will be located in areas to which the public has free access. To guarantee the greatest public benefit, the memorial must have a minimum 30 hours per week public access. There is however no restriction regarding ‘free’ public access. Memorials charging admission (e.g. those on Heritage sites) are also fully eligible to apply, provided all other conditions of the scheme are met. Memorials will also be covered where access would involve retrieving a key from a reasonably accessible keyholder.

All memorials must bear a commemorative inscription or plaque. There is no subject matter restriction beyond a requirement that the memorial commemorates a person or people, an animal or an event.  Without a plaque or inscription confirming a commemorative intention, the memorial will not be eligible under the scheme.

The scheme does not cover private expressions of remembrance, such as gravestones or mausolea.

The scheme is restricted to structures. This includes traditional memorials such as stone crosses, monoliths and statues, as well as plaques fixed to buildings.

Any memorial that does not require construction (e.g. book, portrait), or is intangible (e.g. theatrical or musical event) would not be covered by this scheme.

Structures that have a dual purpose are not eligible under the scheme (e.g. neither a memorial bench nor a playground would be covered. Although the primary function may be as memorials, each has an alternative use, in this example as seating / play area). Stained glass windows, although dual-purpose, are eligible.

Also excluded from the scheme are memorial gardens and trees, which are not structures capable of construction or renovation, although minor landscaping and planting undertaken in the course of memorial construction will generally be eligible.

The scheme returns the full amount of VAT paid.

Applications can only be paid where accompanied by a Contractors original VAT invoice. The invoice must be for works already completed, and must be fully settled prior to submission under the scheme. 

You must submit with your application, an original VAT invoice (or original receipted invoice) from the contractor. Claims will not be paid without this original documentary evidence. Photocopied invoices are not acceptable.

Where an invoice covers both eligible and ineligible works / memorials, this distinction must be made clear either on the invoice, or in question 22 of the application.

Charities / faith groups that are registered for VAT (because they charge an entrance fee or run business activities) and pay a reduced effective rate of VAT, can only claim the amount irrecoverable from HM Revenue & Customs (previously Customs & Excise). Evidence of this agreement must be provided with the application.

In arrears, on receipt of completed application form and all relevant documentation.

Yes, may be downloaded from scheme website (see below).

For Guidance on eligible works, please refer to Eligibility Checklist, or contact the scheme Helpdesk on 0845 600 6430.

Applicants should note that this is a VAT refund scheme, not a nil rate scheme. The full rate of VAT has to be paid as usual to the contractor, and the sum is subsequently refunded when the work has been completed. Although the end result is the same as paying a nil rate of VAT, there are clear cash-flow (and hence fundraising) implications.