CTG Newsletter – 23 January 2017
Budget 2017 submission
In a submission in advance of the 2017 Budget, the Charity Tax Group (CTG) has outlined a number of policy areas on which the Government could take action to improve the tax position of charities.
CTG Chairman John Hemming commented: “The Budget presents an important opportunity for the Government to demonstrate its continued support for charities. This should include a commitment to review the scope of VAT refund schemes to tackle the pressure of irrecoverable VAT; extending Apprenticeship Levy contributions to volunteer training costs; consideration of ways to mitigate the impact of Insurance Premium Tax increases on the sector; and the reintroduction of the Research and Development Credit for non-university charities. As tax policies are developed we urge officials to continue to consult key stakeholders, to avoid unintended consequences and identify important opportunities for simplification of the tax system for charities.”
Read a detailed summary of the Budget submission here. The Budget will be published on 8 March 2017).
Register for the CTG Annual Conference (28 March 2017)
Financial Secretary to the Treasury (FST), Jane Ellison MP, will give the keynote speech at this year’s CTG Conference, which will take place at the Wellcome Trust, on 28 March 2017. Details of the full programme and expert speakers will be announced in due course. Attendance at the event is free for charities and CTG Observer Members (up to two representatives per organisation).
Register here!
Representatives from CTG recently met the FST, who has ministerial responsibility for charity tax, at a roundtable meeting to discuss sector priorities relating to Gift Aid and other issues.
Update on ‘Economic Activity’
CTG’s Technical Advisor Graham Elliott, wrote a piece last year on the severe potential consequences of the Court of Appeal decision in Longridge on Thames, and asked whether there were circumstances in which the old ‘Fisher’ tests would ‘have a role’ in helping charities argue that their activities are non-business, thus qualifying for the construction zero rate for new buildings. The First tier Tribunal case of Gravel Road Records Limited (TC05598) appears, in a round about way, to suggest that there are. This latest briefing by Graham looks at how this case could affect charities.
HMRC updates guidance for charities on the Common Reporting Standard
HMRC has updated and completed its guidance for charities on the Common Reporting Standard (CRS). The updates from HMRC include technical clarifications around aspects such as unit trusts and common deposit trusts, with the most substantial update being the introduction of a new chapter on how the guidance impact on charities and their human rights. Further information can be found here.
Insurance Premium Tax
The Financial Secretary to the Treasury has responded to a series of parliamentary questions on the impact of the recent Insurance Premium Tax increase for charities. The Minister said that while all tax policy is kept under review, it would be challenging to implement an exemption for insurance purchased by any specific group. Please complete CTG’s Insurance Premium Tax survey so we can provide data on the cost of the increase on different charities.
Consultations tracker
CTG will be preparing responses 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.
CTG also regular updates its VAT case law tracker.
CTG Newsletter Archive
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CTG Commentaries
Read our expert commentary pieces and leave your comments and queries:
Please contact us at info@charitytaxgroup.org.uk if you would be interested in contributing a commentary piece.
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