CTG press release: 17/03/04

The Charities' Tax Reform Group (CTRG) welcomes the following announcements in the 2004 Budget:

• that the Government will grant-aid all the VAT on repairs to listed places of worship carried out between 1 April 2004 - March 2006. It is very important though, that this becomes permanent as soon as possible;
• the scheme to promote employee support for charities through a Payroll Giving scheme for small and medium sized enterprises; and the proposal to explore tax incentives to stimulate corporate giving to charities;
• the moves to encourage more volunteering, particularly among young people;
• that, as part of the Spending Review, the Government will consider extending the VAT refund scheme that has enabled free admission to National Museums and Galleries to university museums;
• that the Government recognises the concerns expressed by conservation and heritage charities about possible adverse changes to Gift Aid. We hope that through negotiation a solution can be found which does not penalise arrangements that have been entered into by charities in good faith.

However, CTRG is disappointed at the lack of measures to tackle some of the underlying problems confronting the sector, such as those associated with regulatory and compliance costs. Also, we have put forward a number of creative suggestions for reducing the burden of VAT on charities, working within the current legislative regime. We hope the Chancellor will give serious consideration to these proposals which would start to address the overall burden of £500m paid out each year in irrecoverable VAT.