The Charity Tax Commission has published its report, Reforming charity taxation – towards a stronger civil society, following a Call for Evidence last year. A press release summarising the main recommendations can be read here.

The Chairman of the Charity Tax Group (CTG), John Hemming, today welcomed the publication of the Commission’s report saying:

“Establishing the Commission was a welcome initiative as it has helped shine the spotlight on the highly-complicated tax regime facing the charity sector. The report usefully identifies that some of the tax rules under which charities operate actually defeat the purpose of the legislation and we welcome the call for tax administration and legislation to keep pace with technological advances – something that the Charity Tax Group (CTG) has been advocating for some time.

“We were disappointed that the Commission felt it had to limit itself to fiscally-neutral proposals as moving money from one pocket to another in the same pair of trousers when you have outgrown the trousers is a problem still to be resolved. The evidence strongly suggests that the added socio-economic value of freeing charities from some of the tax burdens that they face would more than outweigh any additional cost of reliefs as any additional money released would be invested in providing additional facilities and services. 

“CTG cautions against any attempt to limit reliefs to particular types of charities: not treating charities equally jeopardises the independence of the sector – something to be avoided at all costs.”

CTG will be commenting in further detail in due course and looks forward to the debate that the report will generate. CTG’s response to the Charity Tax Commission Call for Evidence can be read here.