Relief for charities undertaking building works

Financial Secretary to the Treasury Mel Stride has responded to a written question from Julian Sturdy MP (Con, York Outer) regarding the steps being taken by the Government to use the tax system to support charities undertaking building works:

Julian Sturdy: To ask Mr Chancellor of the Exchequer, what steps his Department is taking to support charities undertaking building works through the tax system.

Mel Stride: The Government recognises the vitally important work the charity sector does in the UK, which is why we currently provide tax relief to charities and donors worth over £5 billion per year. This includes over £1.3 billion for Gift Aid alone and a zero rate of VAT for the construction of buildings used for relevant charitable purposes. The zero rate means that charities do not pay tax on the construction of new buildings or services closely connected to the construction of a new building.