The Charity Tax Group (CTG) today responded to announcements related to charities included in the Budget.

Commenting on the budget announcements, John Hemming, Chairman of CTG, said:

“This has been an interesting, tidying-up Budget with some important announcements, the most significant of which is the assurance we’ve received from Treasury officials that the 80% mandatory business rate relief that is given to charities will be maintained, which is very welcome.  Some charities may also benefit from the extension of the small business rate relief although discretionary rate relief for charities is likely to be squeezed again.  Some of the new anti-avoidance measures will require close scrutiny to ensure that they do not inadvertently affect charities, as happened with the close company loans to participators, from which CTG successfully lobbied for an exemption for charities which the Chancellor has confirmed will be in this year’s Finance Bill.

“Many parts of the charity sector will benefit from some specific announcements, ranging from, for example, the extension of the Cathedral repairs fund and the extension of the eligibility for VAT refunds for museums and galleries to the specific grants to certain charities from the LIBOR fines and the Tampon Tax receipts.

“This Budget does not include major new policy initiatives affecting charities but, overall, it is positive.  We hope that this positive attitude will be maintained over the coming year as the Treasury reviews parts of the Gift Aid scheme.”

Notes for editors

The Charity Tax Group (CTG) has over 500 members of all sizes representing all types of charitable activity. It was set up in 1982 to make representations to Government on charity taxation and it has since become the leading voice for the sector on this issue. CTG has persuaded successive Governments to introduce a range of tax reliefs and has also campaigned successfully to protect existing concessions, saving charities a considerable amount of money in the process.

In a submission made to the Government in January, in advance of Budget 2016, the Charity Tax Group (CTG) urged the Government to take the opportunity in the forthcoming Budget to tackle a number of outstanding technical and practical difficulties charities currently face with the tax system. The response focused on a series of policy priorities including the protection of existing VAT zero rates and exemptions, as well as further consideration of VAT refund schemes for charities. CTG proposed a number of changes to improve the Gift Aid Small Donations Scheme and the donor benefit rules, as well as calling for further consultation with the sector before the Apprenticeship Levy is introduced. Finally, CTG called on the Government to use the Budget announcement to make a clear statement that charity rates relief will be protected as part of wider business rates reform.