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Charity umbrella bodies ask Treasury for reduction in 12% Lottery tax

Howard Lake | 13 September 2005 | News

The national umbrella organisations that represent the voluntary and community sector have called for reform of the 12% tax on the National Lottery.

The four Councils believe that the case for revisiting the 12% tax, worth £571m per year, is long overdue and is now overwhelming as Lottery funds are top-sliced to support the 2012 Olympics. This will leave a shortfall in funds for good causes. There has been no formal review of the rate of 12% in the eleven years of the Lottery.

The voluntary and community sector has said that it wants to see the London Olympics as a success, presenting a huge range of volunteering opportunities. Current proposals, however, would see approximately £1.5 billion of Lottery income diverted to the Olympics with the sector claiming that it would bear the brunt of the burden.

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As an interim measure the voluntary and community sector are calling on the Government to reduce the tax-rate to 9% and use the 3% for good causes over the Olympic period with a review at the end.

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