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Royal Military Academy: Charities

Volume 463: debated on Wednesday 12 September 2007

To ask the Secretary of State for Defence what factors were taken into account in deciding not to waive the liability charge for the Royal Military Academy Sandhurst Music on Fire charity. (152354)

Under Government Finance Accounting Regulations, there are no special arrangements for the treatment of charities, whether Service or other. The fact that a charity is to be the main beneficiary of a good or service is not sufficient justification to introduce a special charging regime or to set charges aside.

Under normal charging arrangements full costs would be levied for an event such as the Music on Fire event held by the Army Benevolent Fund (ABF) at the Royal Military Academy Sandhurst on 22, 23 and 24 September 2006. However, in view of the fact that the ABF works on behalf of ex-Service personnel, a case for abatement was agreed whereby the MOD subsidised the cost of hosting this event. The contract drawn up between the MOD and the ABF stated that the charge would be 15 per cent. of the net profit from the event or the direct costs to the MOD, whichever was greater.