HISTORIC PRESS RELEASE : Brown announces VAT boost for disasters emergency committee [January 2005]

The press release issued by HM Treasury on 8 January 2005.

Chancellor of the Exchequer Gordon Brown today announced that the Treasury will be making a special donation to the Disasters Emergency Committee to offset the VAT charged on the proposed charity concert and charity records designed to raise money specifically for the tsunami appeal.

This will be in addition to the sum of at least £15 million the Treasury currently estimates will be given in tax relief on public contributions to the appeal made through the Gift Aid scheme.

In hundreds of cases throughout the country, CDs, tickets, and similar items are being sold to raise money for the tsunami appeal, and many businesses and performers are also donating the proceeds from their activities to the appeal.

As a one-off gesture, in light of the unprecedented public response to the tsunami appeal, the Treasury will be making a special contribution direct to the Disasters Emergency Committee – a sum which will match the VAT expected to be collected from these fund-raising sales of goods and services.

Gordon Brown said:

“Millions of people and businesses across Britain are showing their compassion and generosity. Where there has been a major concert or record in these circumstances in the past, the Treasury has been willing to make a donation equivalent to the VAT.

“I know there are many who will attend charity concerts, buy charity CDs, and buy other goods and services designed to raise money for the tsunami appeal.

“The Treasury will make a special donation which will cover the VAT charged on these purchases, and will make allowance for sales of other goods and services to raise money for the appeal, and thus we will ensure that all the proceeds go to ease the suffering of those people and communities affected by the tsunami tragedy.”