HM Treasury News Release
130/97                                       30 October 1997
______________________________________________________________

    FINANCIAL SECRETARY URGES CHARITIES TO USE THEIR VOICES


Financial Secretary Dawn Primarolo today called on charities
to offer their ideas, from the largest and most radical to the
smallest and most detailed, to the current Government review
into the way they are taxed.

Speaking to the Charities Aid Foundation (CAF) annual
conference in London, Ms Primarolo encouraged delegates to
make their voices heard before 1 December and influence their
future.

     `"This review is a unique opportunity for Government and
charities to work together and take a fresh look at the way
charities are taxed. Instigated by the Government in response
to complexities with the existing system, the review aims to
find a clearer and simpler path to fair tax treatment.

     "All suggestions are welcome, not only the creative and
radical, but also smaller scale suggestions aimed at making
the existing system work better. The responses we have had
already range from letters from pensioners who work in their
local charity shop concerning VAT zero rating, to detailed
discussions and analysis of taxation from charity pressure
groups.

     "The review will enable charities to influence their own
future to produce a more coherent and consistent tax system. I
urge all charities to make their voices heard."




NOTES TO EDITORS 

1.   A review of the taxation of charities was announced by
     the Chancellor of the
     Exchequer on 2 July 1997 (HM Treasury Press Notice 5).
     The aims of the taxation review are:

     * to see if there is scope for simplification of
       charities' taxation; and 

     * to inform the Government's negotiation position in the
       forthcoming EC review of VAT social relief.

2.   The main focus of the review is the current VAT
     arrangements. Charities may, however, raise any concerns
     they have about direct taxes or business rates. The
     consultation period runs until 1 December 1997. The
     Government will consider the views submitted and will
     publish a consultation document in Spring 1998 which will
     consider options for possible change. These will be
     discussed with representatives from the charitable sector
     during 1998.

3.   Charities currently benefit from tax reliefs worth 1.75
     billion Pounds, consisting of about 1 billion Pounds direct
     tax relief, 200 million Pounds VAT relief and the balance 
     on relief from business rates.

4.   Comments on any element of the review should be sent by 1
     December 1997 to:

          Mrs Mary Cooper
          HM Customs & Excise
          4th Floor Central
          New Kings Beam House
          22 Upper Ground
          London SE1 9PJ

5.   If you have access to the Internet you can find this news
     release and other Treasury material at http://www.hm-treasury.gov.uk.