Farrer & Co podcast reviews Charity Tax Group Budget submission
In the latest Farrer & Co podcast, Charlotte Black, a member of the law firm’s tax practice, caught up with Richard Bray, Acting Chair of the Charity Tax Group, to discuss CTG’s recent Budget submission. The Budget will be announced on 3 March 2021.
The twenty minute podcast can be accessed at https://www.podbean.com/ew/pb-ixqg4-fbf3fa
In the Budget submission CTG calls on the Government to take the following steps to address five core tax policy issues facing charities at present:
1. Review the structural distortions caused by the VAT system resulting in significant irrecoverable VAT for charities. Consideration of a special VAT rate of 10% for charity purchases is one option. We also call on the Government to protect VAT reliefs and exemptions in the aftermath of Brexit.
2. Protect charity business rates relief in England following the recent “Fundamental Review”.
3. Continue investing in the Future of Gift Aid project to help ensure Gift Aid is fit for the digital age, including, where relevant allowing minor changes to legislation.
4. Adopt a flexible subsidy control system post-Brexit to ensure that that charities with large property portfolios do not miss out on essential business grants, designed to help mitigate the impacts of lockdown.
5. Consider a temporary increase in the value of Gift Aid to help charities recover from COVID-19.
In addition, we call on the Government to:
6. Bring forward the review of advertising and the associated tax treatment for charities, extending the VAT zero rate to social media advertising.
7. Agree to an extension of the 9 month time limit for payment of Gift Aid payments from trading subsidiaries to parent charities, due to the impact of COVID-19.
8. Protect the Community Infrastructure Levy charity exemption.
9. Extend the Apprenticeship Levy to training and/or volunteer costs.
10. Review the appropriateness of Insurance Premium Tax on charitable activities.
11. Extend the Listed Places of Worship Grant Scheme.
The full Budget submission can be accessed via the link below