How are charities and the not-for-profit sector affected by the emergency Budget - 22 June 2010?
There are several points coming out of the Budget, some are specific to charities and the not-for-profit (NFP) sector and some affect other sectors as well.
- The Budget includes a commitment to continue to work with the sector, including the Gift Aid Forum. The commitment is to improve the system and to encourage more charitable giving.
- HMRC intends to replace the current rules on substantial charity donors, consultation will be over the summer with full legislation published in the autumn.
- Alongside the Government’s consultation on the allocation of good causes funding from the National Lottery, the Government will review the current National Lottery taxation arrangements.
- A regional growth fund will be created to help fund regional capital projects over two years.
- VAT will be increased from 17.5% to 20% in January 2011. This will increase costs for charities and the NFP sector. The Government has committed to work with sector bodies to assess the feasibility of implementing the EU cost-sharing exemption in VAT. There will be a formal consultation in the autumn.
- There have been substantial cuts to Government departments budgets (excluding health and aid spending which is protected). However, charities may well find that statutory grants that they have previously received may be cut or withdrawn. This could have a significant effect on some charities.
- The welfare budget has been cut by £11 billion. This could see hard up, ill and disadvantaged individuals and families turning more and more to charities for assistance. If charities are receiving fewer grants and are finding their services are required more than ever, charities could become stretched financially themselves.
Date: 29th June, 2010
Articles from this Author
24th July, 2018
Academies Accounts Direction 2017/2018 (AAD)
9th February, 2018
Guidance for charities regarding the changes to the automatic disqualification of trustees rules
30th November, 2017
Legislative changes affecting the Charitable Incorporated Organisation (CIO)
14th November, 2017
Updated guidance for independent examiners (CC32)
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
Lisa Spearman, Private Client Partner updates on 'Changes to Main Residence Relief from Capital Gains Tax'… twitter.com/i/web/status/1…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole