Budget 2016: A sigh of relief for the Not for Profit sector
Posted On March 17, 2016 By mhauk
This was a Budget that was not particularly focused on charities, a relief for many after the cuts and changes in previous Budget announcements.
Looking at the details from Budget 2016 below there are a number of headlines and analysis that may affect those in the charity and Not for Profit sector:
A number of initiatives were announced that will be of benefit to small businesses and subsequently to charities also, such as a £1,000 extra reduction in Employers National Insurance from April 2016 onwards.
Social impact bond
£5m added to a Social Impact Bond aimed at reducing rough sleeping, and preannounced before the Budget, taking its total value to £10m. There is also to be a new £115m initiative introduced to be spent on ‘second stage’ accommodation for those affected by homelessness.
Over the next four years, a number of named charities will receive funds raised from fines. Namely LIBOR and the Tampon Tax. The funds include; £1m going to both Breast Cancer Care and Girlguiding UK, £5m for a National Mesothelioma Centre, £4.5m for a new air ambulance service in Northern Ireland and £3.5m for Samaritans to support armed services personnel and veterans.
Museums and galleries
There will be a new corporation tax relief introduced from April 2017 for museums and galleries to encourage temporary and touring exhibitions.
A £60m initiative for community land trusts, community-led housing developments in rural and coastal communities set up by local people to develop and manage homes that are affordable for those who live there.
Gift Aid donations will be affected by the rise in the amount that people can earn before having to pay income tax as it increases to £11,500 in April 2017. This will impact the sector as slightly more people will therefore pay no tax and be unable to claim Gift Aid on their charitable donations.
If you would like to understand more about any of these areas or would like to discuss this with a member of the Not for Profit team, please contact Hannah Farmborough or call on 0207 429 4147 to be put in touch with your local representative.