VAT hit for Live 8
Geldof event may receive massive tax bill
Bob Geldof’s Live 8 event, taking place next month to bring attention to poverty in Africa, is to be hit by a huge VAT bill, because money from tickets will not be going directly to help those in need.
Link: Band Aid receives £2m VAT bonus
Proceeds from money raised are instead going to the organisation and administration of the event, which leaves it open to a tax levy.
Tickets for the concert, which occurs on 2 July in Hyde Park, are to be allocated by a text message competition, with those wanting to attend paying £1.50 a time to enter via text message, and entering as many times as they like.
Geldolf is expected to campaign to receive a rebate on the VAT after the concert. He successfully managed to get VAT waived for the Band Aid 20 charity record released over Christmas.