charities

The charity sector has been buoyed by the publication of fresh HMRC guidance on the VAT treatment of supplies of direct marketing.

The move comes in light of criticism from charities of unclear Revenue information following a policy change that meant printing and delivery of mail packs would no longer be zero rated

The amount of tax relief claimed by charities grew to £3.31bn in 2014/15, from £3.07bn in 2013/14, according to latest figures from HMRC.

The total amount comprised £1.64bn in business rates relief, £1.2bn from gift aid, £300m in VAT breaks, and £170m worth of stamp duty land tax relief.

The Revenue’s numbers, which are provisional, indicate that reliefs for individuals on gifts to charities increased by £100m to £1.2bn, with rises in inheritance tax relief, higher-rate breaks on gift aid and covenants, and relief on gifts and shares.