The government will give back all VAT costs on a single released to support this year’s Comic Relief campaign.
The single, One Way or Another by the group One Direction, went on sale yesterday.
The Department for International Development said in a statement that the government would cover the cost of all VAT on sales of the single from the overseas development budget.
It added: "That means the government is effectively ‘giving back’ the VAT to Comic Relief, so everyone who is buying the single can be confident that every penny they spend will go towards the good causes that Comic Relief supports."
Kevin Cahill, chief executive of Comic Relief, said: "I’m absolutely delighted that the government is going to grant the VAT on the sale of One Way or Another back to Comic Relief. It means that as much money as possible will go to the people who need it most and will add to the success of this year’s Red Nose Day campaign."
The Prime Minister, David Cameron, has a cameo role in the video for the single.