30 October 1997
FINANCIAL SECRETARY URGES CHARITIES TO USE THEIR VOICES
Financial Secretary Dawn Primarolo today called on charities to offer their ideas, from the largest and most radical to the smallest and most detailed, to the current Government review into the way they are taxed.
Speaking to the Charities Aid Foundation (CAF) annual conference in London, Ms Primarolo encouraged delegates to make their voices heard before 1 December and influence their future.
"This review is a unique opportunity for Government and charities to work together and take a fresh look at the way charities are taxed. Instigated by the Government in response to complexities with the existing system, the review aims to find a clearer and simpler path to fair tax treatment.
"All suggestions are welcome, not only the creative and radical, but also smaller scale suggestions aimed at making the existing system work better. The responses we have had already range from letters from pensioners who work in their local charity shop concerning VAT zero rating, to detailed discussions and analysis of taxation from charity pressure groups.
"The review will enable charities to influence their own future to produce a more coherent and consistent tax system. I urge all charities to make their voices heard."
NOTES TO EDITORS
- A review of the taxation of charities was announced by the Chancellor of the Exchequer on 2 July 1997 (HM Treasury Press Notice 5).The aims of the taxation review are:
- to see if there is scope for simplification of charities' taxation; and
- to inform the Government's negotiation position in the forthcoming EC review of VAT social relief.
- The main focus of the review is the current VAT arrangements. Charities may, however, raise any concerns they have about direct taxes or business rates. The consultation period runs until 1 December 1997. The Government will consider the views submitted and will publish a consultation document in Spring 1998 which will consider options for possible change. These will be discussed with representatives from the charitable sector during 1998.
- Charities currently benefit from tax reliefs worth 1.75 billion Pounds, consisting of about 1 billion Pounds direct tax relief, 200 million Pounds VAT relief and the balance on relief from business rates.
- Comments on any element of the review should be sent by 1 December 1997 to:
Mrs Mary Cooper
HM Customs & Excise
4th Floor Central
New Kings Beam House
22 Upper Ground
London SE1 9PJ