Income tax exemptions for charities will hit a record £2billion at the end of this financial year, official Government forecasts show.
HM Revenue & Customs (HMRC) predict 2017 will see exemptions increase by more than £70m year-on-year.
The estimates include VAT, Stamp Duty Land Tax (SDLT), and Gift Aid relief, the latter of which is exclusive to the not-for-profit sector.
Records show that charities’ income from these exemptions has increased by almost £400m since the tax year 2012/13.
The figures put SDLT relief at an estimated £185m – a drop of £95m on the previous year. HMRC reasons that SDLT was reformed – from an all-encompassing rates system to a marginal one – in the 2014 Autumn Statement, while large changes in SDLT relief are common because of “very large one-off relief claims”.
It adds that the SDLT data for the previous tax year is provisional and is subject to revision.
Meanwhile, VAT relief is predicted to be worth £400m to the sector in 2016/17, compared to just £250m in 2012/13.
Reports suggest that the forecasts, released earlier this month, do not include business rates relief.
The full forecast for 2016/17 can be found here.
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