Spring Budget 2017: Not for Profit
The Chancellor left the Not for Profit sector alone in his Budget. Although measures were announced in previous Budgets that only take affect from April 2017, the NFP sector has no specific new rules to deal with. However, most in the sector will need to keep a watch on employment and VAT changes.
Below is a summary of the measures previously announced:
Museums and Galleries Tax Relief
The new Museums and Galleries Tax Relief will be introduced from 1 April 2017. This will give additional tax deductions to institutions that put on exhibitions, with an extra 25% of relief available on expenditure for touring exhibitions, and 20% for non-touring exhibitions.
Social Investment Tax Relief
Changes to the Social Investment Tax Relief will apply from 6 April 2017. The amount of investment that social enterprises aged up to 7 years old can raise will increase significantly to £1.5m. However, certain activities, including asset leasing, and running nursing and residential care homes, will be excluded. In addition, the limit on full-time equivalent employees will be reduced from 500 to 250.