Charities and Budget 2016

This year’s Budget had few measures of specific interest to the voluntary sector, but there was a smattering.

Also see ‘Further sector analysis of Budget 2016‘.

Useful Links

Joint registration system delayed again

Civil Society News reports that HM Revenue and Customs’ policy costings document revealed that a new system to enable charities to register with HMRC and Charity Commission at the same time “has been delayed to April 2017”. This has already been put back a number of times.

Budget measures

Various Budget report sections mentioning charities or otherwise of particular interest include:

2.15 (page 93) The use of banking fines

The government has committed £45 million of banking fines over the next 4 years to support military charities and other good causes. (List follows)

2.16 (page 95) Tampon Tax Fund for women’s charities

The government is committing £12 million of funding to support a range of good causes benefiting women. (List follows)

2.43 Close company loans to participators: partial exemption for charities

As announced at Spending Review and Autumn Statement 2015, following consultation the government will legislate so that a tax charge is not applied to loans or advances made by close companies to charity trustees for charitable purposes. This will apply to qualifying loans or advances that are made on or after 25 November 2015.

2.45 Gift Aid digital

As announced at March 2015 Budget, the government will legislate to give intermediaries a greater role in administering Gift Aid.

2.153 VAT: Isle of Man charities

The government will legislate to ensure charities subject to the jurisdiction of the High Court of the Isle of Man are capable of qualifying for UK VAT charity reliefs.

2.183 Stamp Duty Land Tax: additional properties (Community Land Trusts)

… The government will provide £60 million to enable community-led housing developments in rural and coastal communities, including through Community Land Trusts, where the impact of second homes is particularly acute. The South West will receive around £20 million of this funding.

2.302 (page 126) Homelessness

To support vulnerable rough sleepers off the streets and to help those who are recovering from homelessness.

  • £115m for homelessness includes £5m to be put in a Social Impact Bond.


Civil Society News has a fuller list of extracts in its Budget Roundup. This also mentions an announcement that some charitable museums and galleries will now be able to reclaim VAT on the cost of most goods and services (Budget para 2.151) – see DCMS short guidance note on the broadening of the VAT refund scheme.