Since the introduction back in 1984 for certain advertisements to be zero-rated, over the years the scope of the relief has widened. As the University is a charity that is precluded from registering it has benefited from the relief and following the Review of Charity Taxation in 1997-1999 the relief has been further widened and became effective from 1st April 2000.
2. Scope of the advertising relief
The relief is available to the University, but not to its trading companies i.e. wholly owned subsidiaries.
The relief covers all types of advertisements, which are placed on someone else's advertising time or space. This covers any type of advertising which communicates with the public e.g. television, cinema, newspaper, magazines, posters, internet sites etc.
Provided it is intended that the advertisement will be placed in purchased advertising time or space, the supply of design or production of the advertisement will qualify for relief. This would cover all printing, artwork, typesetting etc; an example would be for the design and production of a poster. The goods and services must be closely linked to the production.
Suppliers will always need evidence that the supply was made to a charity. Therefore, a declaration form must be completed for each advert or if a supplier is used frequently a single declaration form may be acceptable.