§ Mr. FlightTo ask the Chancellor of the Exchequer if he will make a statement on the impact on charities of his policies with regard to the taxation of charities. [24565]
§ Dawn Primarolo[holding answer 26 January 1998]: Charities contribute a great deal to society and this is reflected in their favourable tax treatment. However, the system can be complex and charities have for some time called for a review to reduce the administrative burden on them, freeing them to concentrate on their charitable activities. That is why the Chancellor announced a review of the taxation of charities on 2 July 1997. The Review provides an opportunity to see if we can produce a system which better reflects the needs of charities today.
In the first phase of the review, charities and other interested bodies were invited to submit their views. Almost 2,500 replies were received on a broad range of issues. Officials are currently evaluating these suggestions, and the Government will set out possible options for change in a consultation document to be published in the Spring.