Charity groups have criticised HMRC's plans to withdraw a VAT concession on property construction or acquisition.

Currently, charities pay no VAT on the acquisition or construction of new buildings if 90% of the premises are used for charitable purposes. However, the HMRC is proposing raising this threshold to 95% or more from 1 January 2010. The Charity Finance Directors' Group (CFDG) said it was "significantly concerned by the removal of this concession" as it could lead to extra costs for charitable organisations.

For more on this story go to:
http://www.accountancyage.com/accountancyage/news/2245710/charities-reeling-vat

And:
http://www.charityfinance.co.uk/home/content.php?id=3019&pg=15&cat=58

And:
http://www.hmrc.gov.uk/briefs/vat/brief3909.htm