ECJ judgements could mean windfall for charities
Charities
22nd October 2008
UK charities could be in line for a financial windfall as a result of two judgements by the European Court of Justice (ECJ).
According to Charity Finance, the first judgement increases the likelihood that charitable donations made across European Union (EU) borders will become tax-deductible.
Meanwhile, the second judgement could affect sports clubs and associations, allowing them to claim at least three years' worth of VAT charges on subscriptions.
At the moment, British law only permits tax relief on donations made to a UK charity by a donor in this country.
Clive Cutbill, head of international philanthropy at the Withers LLP law firm, said the judgements could have important ramifications for charities and donors across the EU.
He commented: "For donors, this is unmitigated good news. It means that it is likely they will soon be able to give tax-efficiently to any charity in the EU – provided they can prove that the charity satisfies the domestic meaning of 'charitable'."
In related news, UK aid charities are reviewing security following the murder of relief worker Gayle Williams in Afghanistan.
