CTG press release: 16/03/05
Budget Response from the Charities' Tax Reform Group
The Charities' Tax Reform Group (CTRG) was very disappointed at the modest range of announcements for charities and, specifically, that there was no news on two key VAT proposals which we have been discussing with the Government for several months. Both had modest cost implications and are already permitted under existing EU legislation. One measure would encourage charities to work together by providing reliefs on shared services, the other would allow more charities to benefit from reduced rates of VAT. These are not radical but sensible, thought-through proposals which would have brought positive assistance to the sector at little significant cost to the Government.
On the positive side, we were pleased at the encouragement given to promoting volunteering, to helping charities' trading activities by allowing Gift Aid on charity-to-charity donation of profits, and a new reduced rate for certain supplies of advice or information promoting the welfare of elderly or disabled people or children. We also welcome the fact that VAT relief for repairs to places of worship has been extended until 2008.
Nick Kavanagh, CTRG Chairman, said "The single unit for charity matters within Treasury, merging Customs and Excise with the Inland Revenue, is a particularly helpful development. Our ability to make progress on charities' tax reform has been hampered by the lack of integrated policies between the two departments in the past. We hope this heralds a new, co-ordinated approach."
On the positive side, we were pleased at the encouragement given to promoting volunteering, to helping charities' trading activities by allowing Gift Aid on charity-to-charity donation of profits, and a new reduced rate for certain supplies of advice or information promoting the welfare of elderly or disabled people or children. We also welcome the fact that VAT relief for repairs to places of worship has been extended until 2008.
Nick Kavanagh, CTRG Chairman, said "The single unit for charity matters within Treasury, merging Customs and Excise with the Inland Revenue, is a particularly helpful development. Our ability to make progress on charities' tax reform has been hampered by the lack of integrated policies between the two departments in the past. We hope this heralds a new, co-ordinated approach."