Is the Treasury Stealing from the Poppy Collection Box?

I got sent this from a mate of mine and it appears to be genuine, but could anybody else shed light on it?

Service Charities

Treatment Centres like Tyrwhitt House funded by Combat Stress has facilities that have been specially built to provide for ex servicemen and woman who are physically disabled and suffer from PTSD. Projects like 36, Grays Lane in Ashtead could only come about by donations collected by SSAFA. Charitable organisations engaged in assisting serving and former members of the armed forces and their families, saves the MOD £££, so why should 15% from donations collect during events held on MOD Defence Estate property go back to the HM Treasury? If all donations collected on MOD property were to go direct to the charity's mentioned. The Government and MOD need to start supporting our servicemen and women both serving and Veteran by fully helping service Charitable organisations and to stop putting bureaucratic obstacles in their way. Please sign goal: 1,000,000 signatures
If it is true, anyone thinking of doing a bit of fundraising for a charity on MOD property had better ensure that they can get the money gift aided.

I couldn't believe it when I read it, but the way that this government is going I wouldn't be surprised.

This year I will be buying my poppy from the Veteren outside my local shops. I am buggered if the treasury are going to take 15% of any money I donate to the RBL.

It's all true.

See an earlier Govt Response:

The Government fully appreciates the valuable work of charitable groups and we provide £2.7 billion of tax relief to charities each year. This includes special VAT zero rates and exemptions worth over £200 million a year, which mean that charities do not pay VAT on many of the things that they buy. These tax reliefs are in addition to Government funding for the voluntary and community sector, which stands at over £3.3 billion per year. However, EU VAT agreements, signed by successive governments, mean that it is not now possible to further extend the scope of the zero rates available to charities.

We have considered this issue in two major reviews since 1997, and came to two conclusions: first, that it would not be an affordable or efficient use of public resources to reimburse all 250,000 charitable bodies in the UK for the VAT they incur, regardless of the activities they are involved in or their financial health, and which, according to estimates from the charitable sector, would cost over £500 million per year; and second, that there was no fair and principled basis on which we could decide that some charities would be reimbursed their VAT and some would not. Available resources are therefore better and more effectively deployed through existing tax reliefs, spending schemes and investment funds available to the charity sector.
As to the culprit finding new found blame (even though it's been about since '77):
Service charities have to pay. Yet, strangely enough the Smith Institute charity pays nothing at all when it organises functions at Downing Street.

That would be the same Smith Institute that was set up by Gordon Brown.

The very same Smith Institute that gave Ed Balls a lucrative 'job' so he could pay the bills while campaigning to become an MP.

Identical to the Smith Institute that, as a registered charity, used taxpayer subsidies to import American election consultants when Gordon Brown was campaigning for the Labour leadership. (You don't expect him to put his hand in his own pocket do you? Not when he can put his hand in ours).

And in case you were wondering - yes its the very same Smith Institute that's currently under investigation by the Charity Commission for breaking the law that prohibits charities from political campaigning.
More important than VAT - are you or the RBL reclaiming your income tax paid on your donation?

If you give £10 to the RBL, but don't GiftAid it, you are wasting £2.80 in income tax that the charity could have claimed back from Alistair Darling or £5.10 if you are a higher rate taxpayer (£2.80 to the charity, £2.30 you have to reclaim yourself).

If you are giving more than a few pence, do it via or similar methods that allow you to GiftAid your donations.

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