2000s

Second Treasury Charity Tax Review – over 50% of CTRG’s recommendations adopted
Nick Kavanagh (Save the Children) elected Chairman
Arts Minister, Alan Howarth MP, asks CTRG to work with the arts sector on the VAT problems that would result from the free admission to museums and galleries. CTRG devises the “satisfyingly simple” and technically sound solution that enables national museums and galleries to recover VAT (creation of s33A of the VAT Act 1994)

CTRG involved in the successful campaign for the introduction of a refund scheme for VAT on repairs to listed places of worship scheme
CTRG secures manifesto commitment from the Conservatives that measures would be introduced to alleviate the VAT burden of charities – plus expressions of support from leading Lib Dems
CTRG and ECCVAT lobby extensively in response to the Commission’s new VAT strategy. Benedetto della Vedova MEP, the European Parliament’s Rapporteur, works with the groups on possible solutions for charities
Free entry to national museums and galleries with full VAT relief introduced on 1 December 2001

CTRG actively involved in raising charity VAT issues through the Government’s Cross-Cutting Spending Review – the Review acknowledges the problem and VAT relief tantalisingly close – thwarted by last-minute fears about cost
Strategy Unit includes CTRG’s proposals to allow charities to trade directly
Inland Revenue accepts all CTRG’s proposals as part of its consultation on giving via the tax return
Intensive discussions take place with Customs and Excise on the VAT treatment of research and successful outcome negotiated
Chief Secretary to the Treasury sets up biannual meetings with the sector following meetings with CTRG and his presentation at the Group’s AGM

Customs asks CTRG to develop proposals for consideration as part of the UK’s submission to the European Commission’s Reduced Rate review
CTRG and ECCVAT organise major conference in Brussels to highlight the damaging effect of the VAT system on charities. European Commission’s Head of Indirect Taxation confirms that there are no EU obstacles to national VAT recovery schemes for charities
CTRG and ECCVAT lobbying leads to positive support by European Parliament in the latest report on the Commission’s VAT proposals
CTRG participates in European Parliament Hearing of Experts on charity VAT issues: Peter Jenkins gives evidence with Jean-Michel Jarre

Christa Randzio-Plath MEP, Chairman of the European Parliament Economic and Monetary Affairs Committee, publishes commentary on the Commission’s 2003 proposals and calls for special treatment for charities

Successful campaign to extend Gift Aid to admission to cultural properties
Successful campaign to extend VAT relief on free admission to university museums and galleries
Following its study ten years earlier, CTRG publishes MORI research on Attitudes Towards Charities Paying Tax. The number of respondents agreeing that the Government should compensate charities in full for the VAT that they pay has risen to 77%
CTRG/ECCVAT hold conference in Brussels with focus on barriers to cross-border giving in Europe and VAT. Speakers included the European Commissioner for Tax, László Kovács. The Commissioner confirms publicly that national VAT refund schemes are the best solution to the VAT problems of charities
Following the important Children’s Society case taken by Saffery Champness, CTRG’s amendments to draft HMRC Business Brief accepted
Merger of Customs and the Revenue into HMRC leads to establishment of special charities policy team – a major objective of CTRG
Following a review by CTRG members, VAT campaign re-launched and supported by all the main umbrella organisations in the sector. Representatives of ACEVO, CAF, CFDG, the Institute of Fundraising, NCVO and SCVO join CTRG at a Parliamentary launch garnering renewed political support

Following extensive lobbying by CTRG, the Government finally allows the use of the reduced rate for outputs by charities, as negotiated by the Group in 1992/93, for supplies of welfare advice or information provided by a charity or a state-regulated welfare institution or agency
CTRG works with CFDG and Deloitte to produce a Charity VAT survey which examines the administrative and cost impact of VAT on charities, and the extent to which charities are able or willing proactively to manage VAT
In a Lords debate on the voluntary sector and volunteering, several Peers raise charities’ irrecoverable VAT problem, following extensive briefing from CTRG
Treasury sets up dedicated Charity Tax Unit
Mike Parkinson (Oxfam) elected Chairman

The Charities’ Tax Reform Group (CTRG) becomes the Charity Tax Group (CTG) to reflect the wider information / education role adopted by the group
As a result of strong representations from CTG, HMRC agrees to stop investigating charities or investment managers conducting business on behalf of charities regarding liabilities under bond-washing legislation and subsequently repeals the bondwashing legislation
CTG takes lead in seeking repeal of damaging Finance Act 2006 provisions on substantial donors to charity

Working alongside charity shops and churches, CTG successfully resists a Government proposal to scrap the £8,500 de minimis earnings threshold for benefits in kind – an administrative nightmare for any charity that gives its volunteers lunch
CTG was the major sector voice actively lobbying for transitional relief allowing charities to claim Gift Aid at 22% despite the cut in the basic rate of income tax – worth £300 million in Gift Aid relief over three years
Community Infrastructure Levy – CTG negotiates a charity exemption for charity construction developments worth millions to the sector

Following extensive discussions with HMRC, CTG receives confirmation that the cost of providing pens (and similar items) in fundraising packs can be treated as forming part of general fundraising costs, and recoverable to the extent that they relate to taxable business supplies by the charity. HMRC agrees that this treatment is also appropriate to investment management fees, when the cost is also related to increasing the charity’s available funds
CTG’s Director, Helen Donoghue, appointed OBE for services to the reform of charity taxation

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