Finance News: Lib Dem MPs call on state to remove VAT burden on charities

Liberal Democrat MPs have championed two of the sector's biggest financial concerns as the new Parliamentary session gets underway.

Bob Russell and Andrew George tabled early day motions calling on the Government to reduce or remove charities' "crippling" VAT burden and also shelve plans to stop heritage and conservation charities claiming Gift Aid on admission charges.

The VAT motion cites the sector's irrecoverable VAT bill of £400m a year and also the £50m cost of the recent increase in National Insurance employer contributions. It revives a similar motion proposed by the Charity Finance Directors' Group in 2003.

The Gift Aid motion expresses concern that the Government is proposing to stop Gift Aid on day memberships claimed by public access charities like zoos and the National Trust. It "urges the Government to continue to allow these charities to benefit from Gift Aid without restriction to the existing conditions".

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