Home Politics Charities Get Music Tax Break

Charities Get Music Tax Break


Rt Hon George Osborne MP

By William Mills

All VAT will be waived on the First World War memorial charity single, All Together Now, the government has announced.

All proceeds from the record will be donated to The British Red Cross and Shorncliffe Trust, which will use the funds to support the Heritage Park and Education Centre dedicated to the history of the modern British Army.

The success of this single will mean the VAT waiver will be a significant additional boost to these charities.

British Red Cross

This will be funded by fines levied on banks for abusing the Libor system, which the government has earmarked for military good causes.


Performed by the Peace Collective, a collection of UK music artists and 60 under-12 footballers from both the UK and Germany, the single commemorates the centenary of the unofficial ‘Christmas Truce’ in December 1914 when Allied and German soldiers laid down weapons to play football in no man’s land.

Tower of London

Waiving VAT on this single is the latest step by the government to commemorate the First World War, which started 100 years ago: the government also waived the VAT on sales of ceramic poppies from the Tower of London, and used bank fines to fund the poppies’ tour of the UK as a mobile memorial of the war.

X Factor   Band Aid Ebola

The government has recently waived the VAT on this year’s X Factor charity single, the Band Aid Ebola single, and previous VAT waivers on singles include 2011’s Military Wives Choir single, and the 2010 Haiti earthquake appeal single.

George Osborne, the Chancellor of the Exchequer, said:

I want as much money as possible that is made from this single to go towards supporting our brave armed forces – that is why I am giving back the tax paid on sales.

It’s only right that we use the centenary of the Christmas Truce of 1914 to commemorate our soldiers who fought for this country in the First World War, and to support our brave forces who are still fighting to defend Britain.

The Chancellor pledged that all the proceeds from these fines would be spent during this parliament on military and blue light good causes. So far, funding has been awarded to a range of projects from the Invictus Games to mental health support for ambulance, police and fire services.

The VAT equivalent donation for this single will be transferred to the Ministry of Defence to be donated directly to these charities, as an equivalent to waiving VAT.

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