The Chancellor recently announced that VAT on sales of the X Factor winner’s charity single will be donated to children’s charities, Together for Short Lives and Shooting Star Chase.

In recognition of the support both charities provide to children with life-limiting illnesses and their families, the Government will for the sixth year running make a charitable donation equivalent to the VAT payable on the sales of the single to the charities. The government has previously waived the VAT on the Save the Children single, Band Aid Ebola single, 2011’s Military Wives Choir single, and the 2010 Haiti earthquake appeal single.

He has also announced that VAT will be waived on sales of a special recording of the Rolling Stones’ hit ‘You Can’t Always Get What You Want’, the Christmas single in memory of late MP Jo Cox. A charitable donation equivalent to the VAT will be given to the foundation set up in her memory. The Jo Cox Foundation supports a range of charities, including the Royal Voluntary Service and White Helmets.

CTG welcomes these announcements, which highlight the costs that charities face from irrecoverable VAT. We hope that the Government will consider much broader reform of the VAT system in the coming years to ensure a level playing field for charities.