The Act confirms the introduction of VAT refunds for certain charities (including palliative care charities, search and rescue charities, air ambulances and medical courier charities). New sections 33C and 33D has been inserted into the Value Added Tax Act 1994.
The Act also includes a charity exemption from the new Diverted Profits Tax. Charities were not initially excluded from this legislation and, but for the exemption, the new anti-avoidance measure would have applied to corporate Gift Aid donations made from a trading subsidiary to its parent charity even in the absence of an avoidance motive.
In addition, the Finance Act introduces provisions which will enable regulations to be made making it easier to operate Gift Aid through an intermediary.