Chancellor of the Exchequer Philip Hammond said on Friday that both charities, which provide support to children with life-limiting illnesses and their families, will benefit from the donation. It is the eighth year in a row that the government has given back the VAT on The X Factor charity song.
So far, the donations have been worth more than £300,000 over the past eight years, Hammond said.
This year’s charity single will be The Power of Love by Dalton Harris, featuring previous X-Factor winner James Arthur.
The government has donated the VAT on previous charity singles, including the 2016 Jo Cox Foundation single, the 2015 Save the Children single, the 2011 Military Wives Choir single and the 2010 Haiti earthquake appeal single.
The Department of Health and Social Care will donate the VAT on the government’s behalf.
It is the second year that Together for Short Lives and Shooting Star Chase have been named as X Factor charity partners for the winner’s single.
Shooting Star Chase said in a statement on its website: "We’re thrilled to announce that profits from this year’s winner’s single will once again be donated to Shooting Star Chase, alongside Together for Short Lives. During the X Factor final show, supported mum, Sarah, bravely told her daughter Olivia’s story."
Andy Fletcher, chief executive of Together for Short Lives, said in a statement: "Our heartfelt thanks to our friends at The X Factor for supporting the UK’s 49,000 seriously ill children and families. Families coming to terms with the child’s diagnosis often don’t know where to turn for help and support, and many feel isolated and alone. Your support over many, many years has helped us to reach out to thousands of families facing the heartbreak of knowing their child will die young – helping them through the toughest of times."