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Tax loophole for independent museums to be abolished
The Association of Independent Museums (AIM) will be lobbying members of the Treasury concerning the government’s abolishment of a small tax concession which could have serious ramifications for independent museums throughout the UK.
The government announced plans to remove the freedom for cultural attractions to attract Gift Aid on visitor admissions in its Pre-Budget Report.
Gift Aid allows visitors to make a donation instead of paying admission fees. Charities can then reclaim tax on these donations from UK taxpayers.
While the government has said that the abolishment of the Gift Aid scheme will ‘close the loophole’, various independent organisations, including AIM, have retaliated strongly, calling the removal of Gift Aid both mean-spirited and short-sighted.
AIM claims that charitable trusts all over the UK are determined that no loophole exists and that the Inland Revenue had supported their Gift Aid projects. It is estimated that around £10m is raised through Gift Aid every year by cultural charities.
The Treasury is currently completing a consultation with the museum sector, but the abolishment is certain. It is now simply a matter of when, rather than if it will happen.
AIM’s vice chair, Bill Ferris, said: “It’s obviously very bad news for independent museums. It seems extraordinary that the Government has singled out one small charity sector.
“The institutions had budgeted for that level of income, so leading museums in the independent sector are now going to have to lay off staff, reduce restoration plans and discard education schemes as a result.
“AIM is lobbying hard and we’re sending representation to treasury ministers. The political decision has been made though, so AIM will continue to work hard to get the decision changed.” Details: www.museums.org/aim