In a submission in advance of Budget 2016, the Charity Tax Group (CTG) urges 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 focuses 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 proposes 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 calls 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.

CTG Chairman, John Hemming, commented:

“The forthcoming Budget offers the Government the opportunity to demonstrate strong support for the sector at the start of the new Parliament. Protection of invaluable VAT zero rates and charity rates relief is crucial to the financial sustainability of the sector and we call on the Chancellor to state his clear support for both on Budget day. As always, we urge the Government to continue to consult key sector stakeholders, so that we can help to identify any unintended consequences for charities and help to ensure a fairer tax system for charities”.

Notes for editors

The Charity Tax Group (CTG) has almost 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.

For more information and additional comment please contact the Charity Tax Group:

T: 020 7222 1265

E: info@charitytax.info