19th October 2018

It has been over 20 years since charity taxation and reliefs last came under scrutiny in the United Kingdom, but the initial stages of a comprehensive review by The Charity Commission has recently concluded.

The ‘call for evidence’, which sought the views and evidence of anybody with knowledge, expertise and insight into UK charitable reliefs, can be accessed here.

Tax reliefs including gift aid, rate and VAT relief within the charity sector are estimated to be worth about £3.77bn per year, with relief for individuals (primarily gift aid) running at around £1.47bn.

With local authority spending under intense pressure and scrutiny, the possibility of the charity sector plugging this gap in some capacity is being explored. Whether this is acceptable, or realistic, is of interest to the Commission so that they can assess if there are any changes to the tax system that could support charities to achieve their long-term goals and objectives.

The review is led by Sir Nicholas Montagu, former Chairman of the Inland Revenue, alongside a board of six experienced commissioners.

When all the evidence has been collated, it will be very interesting to see if this review leads to significant changes to charitable tax reliefs in this country.

For more information regarding UNW’s charity taxation services, please visit the UNW tax page or you contact David Ward, Tax Partner, at davidward@unw.co.uk or on 0191 243 6081.

The team that completed the Management Buyout

UNW has recently advised Perfect Image, a long-established and trusted end-to-end IT solutions provider, on a Management Buyout (MBO) that completed in May 2019. Chiltern Capital, a London-based private equity firm, provided financial support.

Samuel Knight International, a global recruitment and project man-power specialist headquartered in Newcastle, was founded by Steve Rawlingson in 2014 with the ambition of shaking up the recruitment industry. Initially tackling an acute skills shortage in the energy and rail sector, it has demonstrated an impressive level of growth since its inception.

Newcastle-based chartered accountancy and business advisory firm UNW has advised Receptive Software Limited on its sale to business software firm, Pendo, which is headquartered in the United States.

Following on from our previous article, HMRC have announced an updated guidance for those who are going to be affected by the significant amendment to the VAT rules for construction services known as ‘domestic reverse charge’ accounting.

On 13 March 2019, UNW and Northstar Ventures held an interactive morning session aimed at charities and not-for-profit organisations that were keen to develop their understanding and use of impact measurement.