Any tax changes announced in Wednesday’s Budget will be accompanied by impact assessments which will, for the first time, include an appraisal of the effect of the changes on civil society organisations.

In a written statement to Parliament last week, David Gauke (pictured), Exchequer Secretary in HM Treasury, said that from Budget 2011 onwards, the government will publish a tax information and impact note for tax policy changes at the point at which the policy design is final or near final. “This could be alongside the Budget, publication of draft legislation or final legislation, as appropriate.”

He went on: “These notes will provide a clear statement of the policy objective, impact on the Exchequer, the economy, individuals, businesses and civil society organisations, as well as any equality and other specific impact.”

They will be produced for all substantive changes in tax and National Insurance policy by primary and secondary legislation.

The tax information and impact notes will be published on the Treasury and HMRC websites.

CFDG, who lobbied hard for the impact assessments to be extended to CSOs, hailed the news as a victory.

A spokeswoman said: “Charities are affected by the majority of changes to the tax code, yet are often on the periphery of the tax policy-making process.  CFDG has long said that charities should be a first thought rather than an afterthought when new legislation is created.”  

But she warned that the assessment must not be just box-ticking: “A full analysis of the impact a tax change will have on the sector will be essential if this is to make a meaningful positive difference. 

"Given the sector’s central role in delivering the Big Society we would like to see this extended and used more widely across other areas of policy making.”