2014 Autumn Statement

VAT refunds for hospices and changes to the investment limits for social investment tax relief were among the announcements made in the 2014 Autumn Statement on Wednesday 3 December.

George Osborne, the Chancellor of the Exchequer, used his speech in the House of Commons to say that hospice charities have long been subject to unfair rules that force them to pay VAT, when the NHS does not and that he is refunding the VAT that these hospice charities incur.

Documents released alongside Osborne’s speech also show that the government will increase the annual limit for investment in an organisation under the social investment tax relief scheme to £5million a year, up to a lifetime maximum of £15million. 

The government will also consult further on a new relief for indirect investment in social enterprises, according to the documents.

Osborne also announced that aid workers who died dealing with humanitarian emergencies would be exempt from inheritance tax on their estates, as already applies to those in the armed forces who are killed while on active service.

The documents reiterate the government’s intention to publish legislation that will allow intermediaries to play a larger role in administering Gift Aid. The government also said it would continue and extend the review of donor benefits launched in the Budget earlier this year to include the rules around Gift Aid on membership and entrance fees.

Osborne also announced a review of business rates.

For further information on the 2014 Autumn Statement visit www.gov.uk/government/topical-events/autumn-statement-2014.