CTG calls for changes to be made to charity taxation ahead of the chancellor's autumn statement

The Charity Tax Group (CTG) has urged the Westminster government to use its autumn budget statement on 3 December to resolve a number of difficulties charities currently face with the tax system.

CTG is calling calls for a review of the Gift Aid Small Donations Scheme (GASDS), improvements to the VAT system for charities, including the extension of limited VAT rebate schemes for emergency services charities and hospices, and the reform of Gift Aid declarations as well as reform of Gift Aid donor benefit rules.

It is also calling for a measured approach to tackling abuse of charity tax reliefs, with HMRC encouraged to make the most of existing legislative safeguards.

In June 2010, CTG estimated that charities were losing over £1 billion a year in irrecoverable VAT, a figure which it estimates to have risen by as much as £143 million as a result of the VAT increase in January 2011.

the limited VAT refunds for emergency service charities could – literally – save lives

CTG chairman, John Hemming, said: “At a recent meeting with Priti Patel, the minister responsible for charity taxation, I welcomed her commitment to listen to the sector’s concerns and to take action to improve the tax system for charities.

“I urge treasury ministers to accept the proposals made in our submission; they will save charities time, money and stress."

He said simple changes, such as the removal of the Gift Aid history requirement for the small donations scheme, could really help to increase take-up, by making access to the scheme far easier, and should be given serious consideration.

CTG also called on the government to address the “glaring anomaly between the VAT treatment of Government-funded organisations and volunteer organisations providing search and rescue services”.

Hemming said: “The limited VAT refunds for emergency service charities could – literally – save lives.”