CFDG responds to Tax Policy Making A New Approach

22nd September 2010

The Charity Finance Directors’ Group (CFDG) has submitted a response to the Government’s Tax Policy Making: A new approach consultation document.  The response calls on the Government to recognise the charity sector as a major stakeholder in the policy making process and engage in greater consultation with charities whenever changes are made to the tax code.

CFDG’s Policy Manager, Megan McInally, commented, “CFDG welcome the Government’s proposals and commitment to reviewing its approach to tax policy making.  However it is vital that the Government considers the impact on charities when making changes to the tax code to ensure that these improvements are felt by the sector.  Charities come in many different forms and undertake a diverse range of activities meaning they are affected by the majority of changes to the tax code.  Yet charities have, in the past, been relative outsiders in the tax policy making process.”

To ensure that the proposals properly benefit charities, one of CFDG’s key recommendations is that impact on the charity sector is included as one of the mandatory Specific Impact Tests in the new tailored Tax Impact Assessment.

Megan McInally adds “The suggestions we have made in our response are simple yet effective ways of improving the situation for charities, at little or no cost to the Government.  Given the sector’s role in delivering the Government’s Big Society vision and the difficulties that charities are facing from the public spending cuts, it is more important than ever to engage with charities when making changes to the tax code.”

As well as greater consultation with the sector, CFDG’s response also asks that steps are taken to ensure that anti-avoidance measures do not adversely affect charities and that the Government engage with the sector to simplify existing reliefs.  CFDG also give their support to the Government’s proposal to confirm tax changes at least three months prior to implementation.

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Click here to see a copy of CFDG's response


Notes to Editor:

1. CFDG’s response to Tax Policy Making: A new approach can be found on the CFDG website.

2. CFDG is the charity that promotes best practice in charity finance management, supporting finance managers with conferences, training and a wealth of web-based information.  For further information, please contact Melora Jezierska at melora.jezierska@cfdg.org.uk

3. CFDG’s circa 1600 members are responsible for the finances of charities with a wide variety of income levels. Between them our members manage some £17.53 billion in charity income per year.

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