The Charity Tax Group (CTG) campaigns on behalf of charities to seek changes in tax legislation and administration.

CTG press release: 28/06/11

CTG welcomes the publication of the consultation on the VAT cost-sharing exemption

CTG welcomes the publication of the consultation on the VAT cost-sharing exemption

CTG is pleased that HMRC has finally announced its long-awaited consultation on the implementation of the cost-sharing exemption that is permitted under the EU VAT Directive.

CTG has been disappointed by the lack of progress on this issue in the last year so this is very relieved to see that the consultation has finally been published. CTG has been campaigning for the implementation of this mandatory exemption for a number of years and hopes that the Government will ensure its introduction in the next Finance Bill.

CTG is now considering how the proposals in the consultation will affect charities and is reviving its working group to consider these implications and to prepare a response to the consultation. CTG will also continue its dialogue with the HM Treasury and HMRC consultation team to ensure the interests of charities are taken seriously by the Government.

In response to the launch of the consultation, John Hemming, CTG Chairman said: “We have been urging the Government to introduce this mandatory exemption for several years. The current VAT systems acts as a major disincentive to closer working and collaboration, something which the sector is keen to develop. This exemption will help remove one of the main barriers to effective collaborations”.

Note to editors:

For more information please contact:

Charity Tax Group: 020 7222 1265; info@charitytax.info

John Hemming: 020 7611 8249; j.hemming@wellcome.ac.uk

The Charity Tax Group (CTG) has over 400 members of all sizes representing all types of charitable activity. It was set up in 1982 to make representations to Government on charity taxation and it has since become the leading voice for the sector on this issue. CTG has persuaded successive Governments to introduce a range of tax reliefs and has also campaigned successfully to protect existing concessions, saving charities a considerable amount of money in the process.

For further information about CTG please go to: www.charitytax.info