Changes in the law have rendered this article obsolete. See our article Monument and education deductions not abolished after all.
In our article Tax relief on expenditure relating to listed buildings is to be abolished we reported that this tax deduction would no longer be available from 1 January 2017. Since then, a Chamber letter and the NnavV has outlined what the replacement grant scheme will look like. Under these schemes, listed buildings will only national monuments meant.
Grant schemes
The grant scheme is based on the existing Grant scheme for the conservation of listed buildings (Sim). This grant scheme is intended for modest and cost-effective maintenance of non-residential listed buildings (such as churches, windmills, water towers, castles and fortifications). In addition to the Sim, the provinces also provide restoration grants.
Following a review in 2018, the intention is to apply the same grant scheme to all listed buildings from 2019 onwards.
Maintenance grant
The main features of the maintenance grant for listed buildings that are used as homes (listed residential properties) are as follows:
- The grant amount is 25% of the costs that are eligible for funding under the Guidance on eligible conservation costs from the Sim;
- maximum eligible costs per year: €10,000;
- No grant will be awarded if the eligible costs in a given year amount to less than €2,000.
Practical information
The estimated 6,000 applications received each year will be processed as follows:
- submit a claim after the end of the calendar year for maintenance costs incurred in the previous year;
- digital application form, supported by (scanned) itemised invoices;
- one application at most per year;
- processing in the order in which the application form is received (digitally);
- Once submitted, the grant is approved and paid out immediately (applications are assessed only in broad terms; detailed checks are carried out only in the event of a random sample);
- no grant if the owner receives another grant or a loan from the NRF has received;
- “Do-it-yourself” is not subsidised.
Simple and efficient maintenance
In the NnavV, the legislator clarifies what is meant by ‘austere and cost-effective maintenance’ of listed buildings:
- that the painting is carried out regularly;
- that broken roof tiles are replaced;
- that leaking gutters are repaired or downpipes are replaced.
The aim is to ensure that listed buildings remain wind- and watertight, so that the structure is not damaged. As soon as the roof tiles have to be removed in order to repair the structure, this is no longer maintenance but restoration.
Non-heritage-related costs are not eligible for a grant. Examples of such costs include replacing the kitchen, repairing parquet flooring or electrical installations, or other matters relating to the comfort of the home.
Transitional arrangement
The tax deduction will cease on 1 January 2017 without any transitional arrangements. For owners of listed buildings who have entered into commitments partly on the basis of the expectation that the tax deduction would still be in place in 2017 and 2018, the following transitional arrangement will apply:
- a subsidy of 40% of the potentially tax-deductible maintenance costs;
- submitted using a digital application form;
- carried out by the NRF;
- submit an application between 1 January and 1 March 2017;
- the applicant must demonstrate that they acted on the basis of a legitimate expectation of a tax deduction;
- any commitment with a lender (bank) or contractor must have been entered into before 1 January 2017;
- if the plan was submitted by 20 September 2016 to BBM and a Notice regarding potentially tax-deductible expenses Once it has been received, it is eligible for a grant;
- other government grants are taken into account;
- Once the work has been completed, the grant will be finalised.