The Charity Tax Group (CTG) has submitted its Budget Submission 2023 to HM Treasury.

In summary, CTG has called for the following to support the charity sector:

• the Government to provide investment to realise the aims of the Future of Gift Aid Project;
• introduction of a lower rate of VAT on purchases made by charities;
• modernisation of the ‘Relevant Charitable Purpose’ test so that charity buildings can be utilised more efficiently without the burden of irrecoverable VAT;
• expansion/amendment the Partial Exemption (PE) ‘Standard Method’ to include non-business income, to allow operating units to use separate PE cost centre calculations and to treat all input VAT as residual where turnover is below a specified threshold;
• introduction of customer flexibility to amend their PE ‘Special Method’, within defined limits;
• extension of the existing VAT relief on advertising to social media advertising;
• VAT relief for goods gifted to charities to support people in need;
• replacing the current Listed Places of Worship Grant Scheme with a more straightforward exemption or zero-rating for relevant repairs etc;
• zero-rating charity care sector fees to allow input tax recovery; and
• housing charities to be allowed to certificate zero rated supplies of goods and services connected with rectification of dangerous cladding.

You can read CTG’s Budget Submission, here.