The budget made few mentions of the voluntary sector. However, the following is a summary of the likely benefits to the charity sector.
- Gift Aid: the Gift Aid regime will be simplified. The middle threshold of the scheme will be scrapped, meaning charities can claim a higher level of benefit on donations up to £100. New legislation will formalise existing extra-statutory concessions.
- VAT Threshold: freezing of the threshold at which organisations must register for VAT purposes at £85,000 for two years. Similarly, the current rates of Insurance Premium Tax (IPT) will remain fixed.
- VAT Recovery: an “Accident Rescue Charities Grant Scheme” will be introduced to help accident rescue charities to recover VAT.
- Libor Charity Funding Scheme: the scheme’s last tranche (of £36 million) has been released and will be spent on charities supporting the armed forces and emergency services.
To view our commentary on what the 2017 Autumn budget does and doesn’t do for charities, please click here.