The Chancellor’s announcement in the Autumn Statement of government plans to offer VAT refunds for search and rescue, and air ambulance organisations across the whole UK as well as hospice charities have come under fire for lack of detail of how such a scheme would operate
Audrey Fearing, head of government and public sector tax at EY said: ‘But how generous will George be? Will he offer a full refund on VAT incurred similar to that which local authorities and some museums enjoy or will he limit his largesse to VAT incurred on a limited number of services akin to that enjoyed by the NHS?
‘Based on the values reported it looks like George’s largesse will not go as far as the sector would have hoped. Charities may now have to deal with additional complexity in order to obtain the refund, which many may feel is not worth the effort.’
In his speech, George Osborne referred to the plans and the accompanying 108-page Autumn Statement document stated that from April 2015, UK search and rescue and air ambulance charities will be eligible to claim refunds on VAT they have paid on purchases of goods and services for their non-business activities.
