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

'Wacky' fundraising activities rise by more than 200 per cent, says Virgin Money Giving

24 Apr 2015

Fundraisers are going further than ever before to encourage sponsors to part with cash, according to research...

Comic Relief launches grants programme for digital projects

24 Apr 2015

Comic Relief has launched Tech for Good, a new grants programme to help charities run digital projects...

Tower Hamlets grants-for-votes mayor found guilty of electoral fraud

23 Apr 2015

Lutfur Rahman, the former mayor of East London borough Tower Hamlets, was yesterday found guilty of electoral...

Tower Hamlets grants-for-votes mayor found guilty of electoral fraud

23 Apr 2015

Lutfur Rahman, the former mayor of East London borough Tower Hamlets, was yesterday found guilty of electoral...

Conservative right-to-buy plans 'may be unlawful under charity law'

23 Apr 2015

Conservative plans to extend right-to-buy rules to housing associations would force charities to sell...

Record number of food vouchers issued by Trussell Trust foodbanks

23 Apr 2015

More than one million food vouchers issued were issued by the Trussell Trust over the past year, according...

Charities 'need a complete culture change' for digital transformation, says report

24 Apr 2015

Digital teams need to develop better relationships with colleagues in IT and elsewhere in the organisation...

Comic Relief launches grants programme for digital projects

24 Apr 2015

Comic Relief has launched Tech for Good, a new grants programme to help charities run digital projects...

A third of Britons donate to charity by text message, reveals survey

23 Apr 2015

Over 30 per cent of Britons donate to charity by text message and 61 per cent now donate through online...

Join the discussion

 Twitter button

@CSFinance