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VAT grant to an LPW

by
25 January 2013

iStock

From Mr Michael Robinson

Sir, - I would like to add to the advice in Maggie Durran's column (Gazette, 11 January) on the avoidance of problems from having an excess in a restricted fund after a fund-raising appeal. The outcome of a successful application under the Listed Places of Worship (LPW) Grant Scheme is not, technically, a "reclaim", "refund", or "recovery" of VAT. It is a grant, which should be accounted for as additional income, not as a reduction of the VAT-inclusive expenditure.

Such a grant is unlike most other grants, in that it can be applied for only after money has been spent, and when the receipted invoices are submitted. The intention of the donor of this grant (the Department for Culture, Media and Sport) cannot therefore be to provide money for a specific use. It would seem to follow that an LPW grant may not need to go into the restricted appeal fund that incurred the expenditure.

MICHAEL ROBINSON
36 Trevelyan Way
Berkhamsted
Herts HP4 1JH

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