Autumn Statement 2013 and the VCSE Sector

Charity Comments Off on Autumn Statement 2013 and the VCSE Sector

Presented to Parliament by the Chancellor of the Exchequer, George Osborne, the 2013 Autumn Statement contains a number of measures that will have an impact upon the voluntary, community and social enterprise (VCSE) sector.

According to the Autumn Statement, the Government will introduce:

– Legislation to amend the definition of a charity for tax purposes to put beyond doubt that entities established for the purpose of tax avoidance are not entitled to claim charitable tax reliefs.

– “Objective criteria” for identifying high-risk promoters of tax-avoidance schemes and will impose a stricter regime to govern them. Clients of high-risk promoters will also be required to identify themselves to HM Revenue & Customs (HMRC).

– A joint registration process to allow charities to register with the Charity Commission and HMRC at the same time.

– A new tax relief for social investment in April 2014. The Government intends to widen the scope of the relief, compared with measures originally proposed in a consultation in June 2013 and will produce a “road map” for social investment in January.

– A discount of up to £1,000 on business rate bills for retail premises with rateable values of up to £50,000, including charity shops, for the next two years (2014/15 and 2015/16). Charity shops are already entitled to 80% mandatory business rate relief.

– The removal of employer National Insurance contributions for under-21s earning below £813 per week.

– A cap of 2% on business rates in England and Wales. Businesses moving into vacant properties will have their rates cut by 50%.

– Will establish a new working group to revise the model Gift Aid Declaration to make it easier to understand, and to develop new promotional material to increase take-up.

For further information please contact Peter Taaffe or Lesley Malkin