Foreword from the Exchequer Secretary to the Treasury
Every day British businesses and members of the British public provide essential donations to charities and other organisations which support the most vulnerable in our society.
We want to make sure that the right tax frameworks are in place to facilitate this giving, and encourage even more generosity. That is why we are consulting on the introduction and design of a VAT relief on business donations of goods for charities to give away to those in need, or use for the delivery of their services. This will build on the other instruments within the tax system which support charities and giving, such as gift aid, Payroll giving, income and capital gains tax reliefs for the donation of qualifying assets, the inheritance tax exemption for charitable bequests, and a range of charitable VAT reliefs.
I hope this reform will support vital frontline charities and community organisations to deliver their services and provide essential goods to more vulnerable people across the UK. Through this consultation, I look forward to hearing the views of those making and receiving donations, and I would like to thank all respondents in advance for their help as we design the detail of this reform.
James Murray, Exchequer Secretary to the Treasury