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Grants vs. Contracts & VAT

21 February 2018      Amanda Darley, Head of Operations and Engagement

HMRC has published new guidance on what constitutes a grant and what constitutes a contract for a supply in relation to VAT. While the new guidance seems to lack any mention of charities being regular providers of grants and concentrates mainly on central and local government (which we will feedback to HMRC), it appears to be more useful than the previous guidance. The Charity Tax Group has published a useful analysis of the new guidance here. For anyone interested in discussing this further, the CTG is holding a seminar about it on 6 March (more details can be found here).



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