VAT U-turn 'good news for sector'

By Helen Warrell, Third Sector, 6 February 2008

An HM Revenue & Customs decision to allow charities to reclaim a proportion of VAT costs on their investment managers' fees could result in savings and retrospective claims worth tens of millions of pounds for the sector, tax experts have predicted.

"This is a major opportunity for charities to seek a substantial windfall," said Russell Moore, VAT partner at accounting firm Saffery Champness. "Claims could total several millions of pounds." Charities can already reclaim VAT on fundraising costs for unrestricted income, following a legal challenge brought by the Children's Society in...