The government will effectively waive the VAT due on sales of the X Factor winning contestant’s charity single, the Chancellor of the Exchequer, George Osborne, has announced.
This will be in the form of a charitable donation made to the nominated charities, Together for Short Lives and Great Ormond Street Hospital Children’s Charity.
Together for Short Lives supports children with life limiting illnesses, meaning they are unlikely to reach adulthood, as well as support for their families.
Great Ormond Street Hospital Children’s Charity raises money so that the hospital can continue to provide world class care for sick children as well as providing support for their families.
In recognition of the support Together for Short Lives provides, the Chancellor wants to boost the donation the charity receives through a charitable donation equivalent to the sum of the VAT receipts collected on sales.
This year’s X Factor winner will be announced live on the ITV1 show on 15 December with the winning single also released that evening. All net proceeds from sales are going to Together for Short Lives.
The Chancellor said:
Together for Short Lives and the Great Ormond Street Hospital Children’s Charity provides support to vulnerable children and their families at an important time.
I want to make sure these charities really benefit with as much money as possible going to them – that’s why I am giving back the tax paid on sales of the winning single.
Barbara Gelb, Chief Executive, Together for Short Lives said:
We wrote to the Chancellor of the Exchequer, George Osborne, urging that the government hand back to us the VAT on the X Factor Winner’s single and we are absolutely delighted that he has said yes.
The 20% on top of sales will be a wonderful boost and will help to support the incredible services like children’s hospices, across the UK, that provide care to children and young people with life-threatening and life-limiting conditions.
This extra financial boost, on top of The Factor Winner’s single profits, will make a real difference to families across the UK; helping them to make the most of their precious time together.
Tim Johnson, Great Ormond Street Hospital Children’s Charity Chief Executive said:
We are incredibly pleased that George Osborne has agreed to give back the tax paid on sales of The X Factor winner’s single. This will mean that even more money will be going towards helping Great Ormond Street Hospital to continue to provide world-class care for its young patients from across the UK.
This decision sends a powerful message to people to buy this year’s single and give hope to very sick children and their families.
The donation will come from the Department of Health and will be equivalent to the sum of the VAT receipts collected on sales before the end of December 2013.
Image by ITV.