'Extend VAT relief to all charities'

Charity Tax Group argues that exemption for academy schools, proposed in a draft finance bill, sets a clear precedent

The Petchey Academy, London: Picture by Alex Deverill
The Petchey Academy, London: Picture by Alex Deverill

Plans to give academy schools VAT relief set "a very clear precedent" that should be extended to charities providing public services, according to the Charity Tax Group.

Measures to hand academy schools relief from VAT were published in last week’s draft finance bill.

"We’re very pleased the government has given this exemption to academies," said Helen Donoghue, the director of the CTG. "We’re hoping that more charities could be covered by this targeted relief.

"Local authorities, museums and galleries, and now academy schools all receive VAT relief. The government has set a very clear precedent.

"We think that charities providing services that otherwise would be provided by the public sector should receive the same relief. We think that if the sector is going to be asked to provide more public services, it should have the same tax status that public sector organisations have."

The Treasury did respond to a request to comment.

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