Most repair, renovation and improvement work to existing buildings is subject to Value Added Tax (VAT) at the standard rate of 20%, with certain exceptions. Work on new buildings is zero-rated for VAT, and contractors are not required to charge VAT on labour or materials used. VAT is effectively an extra cost to be taken into consideration by any individuals or organisations who cannot claim it back when they are planning any extension, repair, or maintenance (ERM) work. There is, therefore, a financial incentive to build new, rather than reuse existing buildings. 

Historic Environment Scotland (HES) commissioned Harlow Consulting to undertake research into the implications of a VAT rebate scheme for work on listed buildings in Scotland. This research has gathered and analysed evidence as to the effect(s) a VAT rebate scheme would make in Scotland, thinking about the potential impact and value (or otherwise). 

Fieldwork spanned an online survey of listed property owners, desk-based research into the (highly complex) VAT system and alternatives, the wider political and economic context affecting the research findings, quantitative analysis of Verisk data, financial modelling and depth interviews with heritage sector stakeholders and listed property owners. We supported HES in presenting the findings at a dissemination event following publication.