The Charity Tax Group has today launched the second edition of its Charity Tax Map, a study of the impact of taxation on the voluntary sector.

The document gives charities details of 17 different taxes to which they could be subject. It looks at the associated compliance requirements and identifies the various tax reliefs available to charities.

It also sorts the taxes and reliefs according to the activities charities undertake in a ‘charity tax map matrix’ that helps charities find out which reliefs and taxes apply to them and assess when they need to take professional advice.

The first edition of the Charity Tax Map was published in February 2011 and billed by CTG as “the first time that such a comprehensive and systematic study has been made of the interaction between the tax system and the charity sector”. Although the Group insists that the document is not intended to be a definitive analysis but, rather, a useful signposting tool.

Commenting on the update, the CTG said: “In less than two years since the original publication there have been a significant number of important case law, policy and legislative developments, including two Finance Acts.

“CTG – with the help of specialist volunteers – has published this second edition of the Charity Tax Map to reflect these changes which include the implementation of the cost-sharing exemption, the preparation for the Gift Aid Small Donations Scheme and other practical updates on direct and indirect tax issues.”

Updates in this second edition include:

VAT

• A new section on the cost-sharing exemption.
• Updated guidance on the VAT consequences of both grants and contracts.
• A new section on the combined business/non-business partial exemption method.
• Update to reflect legislative changes to the VAT position of protected buildings and to the position in respect of listed places of worship.
• Update on the imminent withdrawal of the reduced rate for energy saving materials for a relevant charitable purpose.
• Updated guidance on the tax treatment of renewable energy including Feed-in Tariffs following discussions with HMRC.
• Updates on changes to the VAT treatment of bulk mailing postal services and the VAT treatment of salary sacrifice schemes.

Gift Aid

Updates reflecting the new guidance from HMRC on:

• Declaration.
• Changes to the benefits rules.
• Retention of records.
• A new section on the Gift Aid Small Donations Scheme.

Other Taxes

• An update on the direct tax position on payments for use of charity’s logo, business sponsorship and sale of donated goods.
• Extension of the chapter on business rates to provide more clarification of some of the issues affecting charities.
• A new section on the proposed changes to UK residency, which are likely to affect charities with UK staff carrying out their work overseas.
• Updated section on the new reduced rate of IHT which applies where 10 per cent or more of a deceased’s net is left to charity.
• Updated section on the Tainted Charitable Donations (TCD) rules.

The Charity Tax Map is available on the CTG website here.