Share

VAT recovery clause for academy schools raises charity hopes

Helen Donoghue, director of the Charity Tax Group
News

VAT recovery clause for academy schools raises charity hopes1

Finance | Gareth Jones | 13 Dec 2010

The Charity Tax Group (CTG) is to renew its call for charities to be able to reclaim irrecoverable VAT after a provision allowing academy schools to do so was included in the draft Finance Bill 2011.

Under the proposed legislation, academy schools will be able to recover VAT incurred on purchases made to support their non-business activities thanks to a new section to be inserted into the Value Added Tax Act 1994.

CTG believes that an extra clause could and should be added for charities, on the grounds that the government’s stated policy objective in the document is that academy schools should be able to recover VAT “just as schools run by local authorities can”.

In email update, CTG (which is led by Helen Donoghue, pictured) writes: “This reopens the whole issue of irrecoverable VAT incurred by charities.

“If academies are to be put on the same basis for VAT purposes as local authority schools, is there any reason why (for example) care homes run by charities should not be put on the same footing as care homes run by local authorities?”

CTG says it will be putting this case strongly in its response to draft bill consultation, which is open to consultation until 9 February 2011, as well as in its response to the Cabinet Office Green Paper on Commissioning Public Services.

Jan
13 Dec 2010

Our Nursery provides Early Years education for 3-5 year old children. Local Authority maintained schools and soon to be free schools are able to recover VAT while our Association cannot. Perhaps this is a better example of the inequities of VAT?

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Macmillan's voluntary income soars by £34.1m

31 Jul 2014

Macmillan Cancer Support raised £186.9m in 2013 – an increase of £34.1m on the previous year, according...

Half of hospices in England saw NHS funding cut or frozen this year

31 Jul 2014

Half of hospices in England have had their statutory funding from the NHS either cut or frozen this year,...

Syria and Haiyan appeals boost Oxfam income by 6 per cent

30 Jul 2014

Oxfam’s total income rose by more than £21m to £389m in the year to March 2014, according to its annual...

Cranfield Trust endorses stricter rules for new charities

31 Jul 2014

The Cranfield Trust has added its voice to the view that there are too many charities, recommending to...

Charity Commission to meet Society Network Foundation trustees this week

30 Jul 2014

The Charity Commission is meeting with the trustees of Society Network Foundation this week in an attempt...

Commission investigates charity over concerns it was used for private benefit

29 Jul 2014

The Charity Commission has opened a statutory inquiry into grant-giver the Catalyst Trust over concerns...

Online donations forms are too long and cost charities donations, finds report

28 Jul 2014

One third of leading charity websites require potential donors to complete more than 20 actions before...

Greenpeace video removed from YouTube following copyright claim

14 Jul 2014

A campaign video by Greenpeace against Lego’s relationship with Shell has been subject to a copyright...

Oxfam advert removed after appearing before extremist videos

10 Jul 2014

Oxfam has removed one of its adverts from YouTube after it was shown on channels showing content from...

Join the discussion

 Twitter button

@CSFinance