CTG Newsletter – 5 May 2017
CTG regional meetings
CTG is hosting a series of meetings for charities and advisers exploring recent policy developments and providing practical tax updates. These afternoon events are free and will be preceded by a sandwich lunch.
Register here for the next meeting on 19 June, in Birmingham, in association with BDO.
Presentation slides from yesterday’s meeting in Leeds (hosted by Wrigley Solicitors) can be accessed here.
CJEU decision in the Brockenhurst College VAT case
In its decision on the Brockenhurst College case (C-699/15) the CJEU has reversed the AG Opinion which was in favour of HMRC’s position. The case relates to the VAT treatment of certain ancillary supplies made by an education provider. CTG’s Technical Adviser, Graham Elliott, has published a commentary considering the background to the case and the wider implications for charities.
Old £5 note no longer legal tender
Charities are reminded that from 5 May 2017, the old paper £5 note, featuring Elizabeth Fry, is no longer legal tender. After 5 May 2017, retailers and the public no longer have to accept the paper £5 note as payment or in change. The new polymer £5 note featuring Sir Winston Churchill will be the only £5 note with legal tender status. Some banks and building societies may accept paper £5 notes after 5 May, but this is at their own discretion. The Bank of England will continue to exchange Fry £5 notes forever, as it would for any other Bank of England note which no longer has legal tender status. Further information can be found on the Bank of England website here.
Reduced VAT rate for e-publications
Following the recent ECOFIN debate, the European Parliament’s Economic and Monetary Affairs committee has voted to lower VAT rates on e-books, aligning them with printed books. The proposal will now be voted by the Parliament as a whole at the end of May. CTG has welcomed this helpful development, which we proposed in a response to a Commission consultation last year.
Election developments
Taxation
The parties have not yet released their election manifestos, but their taxation plans have already come under the spotlight
- The Prime Minister has refused to repeat her party’s 2015 “tax lock guarantee” – while promising there would be no increase in VAT. The Chancellor has said that the Conservatives aere “a low tax party” but asked whether the Tories would contemplate tax rises on the better off, has said: “Our goal is to see the burden of tax on working people reduced as the economy grows.”
- Labour has also said it will not raise VAT, and has promised low taxes for what it calls “low and medium earners”. It has also said it will increase corporation tax and reverse capital gains and inheritance tax cuts, which will pay for the majority of its spending commitments.
- Influential think tank the Institute for Fiscal Studies has described the so-called “tax lock” as “unwise” and a “serious constraint on the ability to raise additional revenues”. It has noted that together, national insurance, income tax and VAT make up almost two-thirds of the UK’s tax revenues.
Future of key decision makers
- Financial Secretary to the Treasury, Jane Ellison, is Conservative MP for Battersea and is standing for re-election. She currently holds a majority of 7,938, although the areas was one of the strongest supporters of remaining in the EU so could face some pressure.
- Minister for Civil Society, Rob Wilson, is Conservative MP for Reading East and is standing for re-election. He currently holds a majority of 6,520.
- The Chancellor, Chief Secretary to the Treasury and Secretary of State for Culture, Media and Sport are all re-standing and hold strong majorities at present.
- Shadow Secretary of State for Business, Energy and Industrial Strategy, Rebecca Long Bailey, is Labour MP for Salford and Eccles and is standing for re-election. She led the Labour party’s representations on the recent Small Charitable Donations Act. Shadow Chief Secretary to the Treasury, Peter Dowd, Labour MP for Bootle, is also re-standing. Both hold large majorities
Consultations and case law 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’s VAT case law tracker can be accessed here.
CTG Newsletter Archive
Members can catch up on CTG’s recent newsletters using the links below:
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.
CTG website
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