£160,000 VAT setback for fundraisers of All Saints church in Mudeford after government changes tax rules

FUNDRAISERS for a church restoration project have suffered a £160,000 “setback” after the government changed the tax rules on listed places of worship.

VAT will now be charged on major repair and restoration projects, which has added to the cost of rebuilding All Saints Church in Mudeford. The building was badly damaged in a fire in July 2022.

Sally Clifford, head of the church’s steering group, revealed: “It has hit us quite hard; we have to find another £160,000 on top of what we had already planned to spend on the rebuilding.

“It is a great shame but there is nothing we can do about it, and we are in a better position than some churches in the UK. But it is a setback we had not planned for.”

The National Churches Trust, a charity which supports church buildings, has said the VAT change will “be a huge additional burden on cash-strapped parish churches which are already dependent on fundraising, grants and donations to maintain heritage buildings”.

The cost of rebuilding the church is being covered by insurance, but All Saints needs to raise another £350,000 for amenities needed to make it “fit for future generations”.

Ms Clifford said she hopes to organise fundraising events each month this year, the next being a travel-themed quiz called Around the World in 80 Questions to be held at Highcliffe Sailing Club on 10th May. To buy tickets, call Ms Clifford on 07821 447278.

The fire, which almost completely gutted the church, is believed to have been started by an electrical fault. It is hoped the rebuild will start in summer.