BACKGROUND

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 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.