Christian groups may lose tax breaks

Trevor James  |  Features
Date posted:  1 Dec 2001
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Christian organisations could lose their right to tax relief under proposals put to the Government recently.

In July Tony Blair gave the Cabinet Office Policy & Innovation Unit the task of reviewing charity status. Starting with a clean sheet they are considering all options. Their report, due in early 2002, is likely to be the biggest shake-up in charity law in 500 years.

Recommendations by the Institute of Philanthropy argue that tax breaks should only go to organisations that do good works. This could include sports clubs and political campaigning organisations, but exclude religious groups.

New test

A report from The National Council for Voluntary Organisations recommends that an overarching Public Benefit test should replace the long-established four heads of charity: the relief of poverty, the advancement of education, the advancement of religion and other purposes beneficial to the community. They would, the NCVO freely admit, exclude religious groups that are not actively serving the wider community.

If Christian groups are not to be sidelined, they should make their views known without delay. Comments should be sent to piuvolsect@cabinet-office.x.gsi.gov.uk or by post to Vicki Bakshi, Voluntary Sector Team, Room 4.6, Admiralty Arch, The Mall, London SW1A 2WH.

The review does not deal with Scotland or Northern Ireland. However, a commission chaired by Lord McFadden has recommended to the Scottish Executive that the Public Benefit test should be applied to charities in Scotland.

Trevor James

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