What the Autumn Statement means for the third sector

On Wednesday 3 December, the Chancellor George Osborne announce his Autumn Statement – outlining the latest spending and tax decisions of the UK Government. Read full statement and report

What does the statement mean for the third sector?

Here we list the main announced changes that affect charity taxes, welfare provision, and the environment, and provide links to further reading from external sources.

Charity taxes

New VAT refunds for some charities:

• a refund on the VAT that hospice charities incur;
• search and rescue and air ambulance charities will be able to claim VAT refunds.

Gift Aid review:

• the Government will publish draft legislation to give intermediaries a greater role in administering Gift Aid;
• the Government will extend the review of donor benefits to include consideration of the rules for claiming Gift Aid on membership and entrance fees.

Social investment tax relief (SITR):

• the Government will seek EU approval to increase the investment limit for SITR to £5 million per year per organisation, up to a maximum of £15 million per organisation;
• the Government will make special purpose vehicles for subcontracted and spot-purchase social impact bonds eligible for SITR in autumn 2015.

More information on VAT and Gift Aid changes.

Welfare

• The £2,000 Employment Allowance is to be extended to individuals who employ carers;
• Universal Credit work allowances will be frozen for a further year;
• tax credits will be cut when overpayments are ‘certain’
• unemployment benefits for migrants with ‘no prospect of work’ will be ended.

More details on Employment Allowance for carers. More details on work allowances

The Environment

• new tax breaks for North Sea Oil and Gas;
• new government funds to support shale gas;
• refreeze of fuel duty;
• plans for exemption of Air Passenger Duty for children;
• no extra provision for the Green Investment Bank beyond 2016.

Comment on this by green groups