CTG Newsletter – 21 September 2016

Possible VAT implications of Brexit

A presentation recently given by CTG’s Technical Advisor, Graham Elliott, on the possible VAT implications of Brexit can be read here.

Apprenticeship Levy Draft Regulations

HMRC has published the first package of Draft Regulations on the Apprenticeship Levy, which have been drawn up under the powers in the Finance Act 2016, specifically relating to the calculation, payment and reporting of the Levy, including the operation of the £15,000 annual Levy allowance. HMRC has also launched a technical consultation on the Regulations, with responses due by 14 November 2016. Further information is available here.

IHT on legacies to non-UK charities (Routier v HMRC)

In Routier & Anor v Revenue & Customs [2016] the Court of Appeal found that a legacy to non-UK charities could not benefit from the IHT exemption under IHTA 1984 s 23. Further information can be found here.

VAT and e-books consultation

CTG has responded to the European Commission consultation on reduced VAT rates for electronically supplied publications. CTG’s response (which can be read here) called for Member States to be given the flexibility to introduce reduced and possibly zero rates for e-books and other e-publications, including e-periodicals.

HMRC clarifies guidance on Gift Aid and donated goods

HMRC has amended its entry-level guidance on the Retail Gift Aid process operated by charity shops. Further information can be found here.

VAT and dwellings

HMRC has published Revenue and Customs Brief 13 (2016): VAT, the liability treatment of a dwelling formed from more than one building. This brief explains the change in policy relating to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings into a dwelling. HMRC now accepts that single dwellings can be formed from more than one building. Further information can be found here.

Charity Commission reports on financial management

The Charity Commission has published two reports which show that trustees who take early, pragmatic steps to actively identify and manage their financial difficulties will secure better outcomes for their charities and their beneficiaries. The reports can be accessed here.

Parliamentary briefing paper on GASDS updated

The House of Commons Library has updated its briefing paper on the Gift Aid Small Donations Scheme (GASDS). The note discusses the background to the Government’s initiative, and the legislation to give it effect, including the latest Small Charitable Donations Bill 2016.

VAT appeals update

HMRC has updated the list of VAT cases where HMRC has:

lost at the first-tier tribunal that could have a wider impact
lost in the Upper Tribunal or higher courts
taken a decision about whether to appeal.

CTG Seminar in Cambridge (26 October 2016)

CTG, in partnership with Mills & Reeve, invites you to participate in a session for charities and advisers exploring recent policy developments and providing practical tax updates. CTG’s technical adviser, Graham Elliott, will be giving a presentation and there will also be an opportunity for a Q&A with an expert panel. Topics being covered will include VAT, Gift Aid, the Common Reporting Standard and the Apprenticeship Levy as a well as a review of the potential implications of Brexit for the sector.

The seminar will take place at Mills & Reeve’s Cambridge office on Wednesday 26 October 2016 from 14:00 to 16:00. Registration and a sandwich lunch will be available from 13.00.

You can register for this free event here.

Consultations tracker

Open consultations

CTG will be responding to a number of important consultations over the next few months. Our consultation responses rely on input from members and we would encourage you to send us your thoughts, and where relevant submit your own consultation response. The deadlines for forthcoming consultations are outlined below. Please send your feedback via the relevant consultation page on the CTG website or to info@charitytaxgroup.org.uk.

26 September 2016 – 100 per cent business rates retention (DCLG)
5 October 2016 – Gift Aid and intermediaries technical consultation (HMRC)
7 October 2016 – SDLT filing and payment process (HMRC)
7 October 2016 – Review of Business Rates system (Scottish Government)
12 October 2016 – Strengthening tax avoidance sanctions and deterrents (HMRC)
19 October 2016 – Salary sacrifice for the provision of Benefits in Kind (HMRC)
29 October 2016 – Museums and galleries tax relief (HM Treasury)
7 November 2016 – Making Tax Digital consultations (HMRC)
14 November 2016 – Apprenticeship Levy Draft Regulations (HMRC)

CTG Newsletter Archive

Members can catch up on CTG’s recent newsletters using the links below: