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Charities (Taxation)

Volume 885: debated on Friday 7 February 1975

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asked the Chancellor of the Exchequer what is the estimated annual cost to the Exchequer of tax concessions to registered charities.

I regret that there are no reliable estimates of the total cost of tax concessions to registered charities, including relief from income and corporation tax on income received gross and from capital gains tax. It is estimated, however, that for the year ended 30th September 1974 the cost of repayments of tax to charities and of transitional relief under Section 52 of the Finance Act 1973 was of the order of £70 million to £75 million. These Inland Revenue figures relate to charities as defined by Section 360 of the Income and Corporation Taxes Act 1970, which are not necessarily the same as registered charities. No account has been taken of relief from estate duty on the estates of those making qualifying charitable bequests. In addition it is estimated that the present annual cost of certain concessions to charities in respect of VAT and the Pool Betting Duty is about £2 million.