NCVO launches commission on charity tax and VAT

Review of charitable reliefs.

By Annette McGill

The National Council for Voluntary Organisations (NCVO) has announced it has set up a commission to review of the charity tax system.

The team of commissioners led by former Chairman of Inland Revenue Sir Nicholas Montagu will review existing charitable reliefs and make recommendations to government as to how the reliefs might more effectively achieve their intended public benefits.

The NCVO says existing tax reliefs for charities amount to approximately £3.7bn each year and generate significant public benefit by helping charities do more.

Launching the commission, Sir Nicholas Montagu said:

“The government’s last comprehensive review of the charity tax system was in 1997. Since then, the charity sector and the environment in which it operates have evolved dramatically.

“Charities have come to play a much bigger role, for example in public service delivery, and they operate on new and different business models.”

The commission aims to complete the review within 18 months.