Finding the energy to fight tax proposals

Charities must be exempt from the Government’s proposed energy consumption tax, leading sector groups have said.

Details of the tax emerged in the Government’s Business Energy Efficiency Review consultation.

Charity Tax Group and Charity Finance Group have queried why charities are included. They point out the matter relates to business energy and improving the efficiency of UK firms.

The groups say the proposed tax must allow for charities’ primary purpose energy usage, rather than focus on a broad business/non-business test.

Charity Tax Group chairman John Hemming welcomed efforts to boost energy efficiency. But he added: “In the context of charities we are not convinced that this is best achieved by imposing a tax and associated reporting requirements.

“Instead, we would propose a charity exemption from the new tax and optional and proportionate reporting requirements.”

The Government wants to replace the existing Carbon Reduction Commitment Energy Efficiency Scheme and Climate Change Levy.

Moore Thompson keeps a close eye on legislative change and how it affects the sector. We reassure charities that not only will they be kept up to date but receive the best advice on how to make them as financially-efficient as possible. For more information, please contact us.