VAT will not be due on the proceeds generated by the sales of the Band Aid 30 single after the chancellor agreed to waive the levy.
The move means all the cash raised by the song – a re-imagining of Do They Know it’s Christmas? – will go to charities fighting the spread of the Ebola virus.
Britain has already committed £230m to contain and control the disease.
Organiser Bob Geldof (pictured), who is working with artists including Coldplay’s Chris Martin, Bono, Emeli Sande, One Direction, Rita Ora and Ellie Goulding for the cause, described the gesture as “amazing”.
George Osborne said: “I spoke to Bob Geldof this morning and I confirmed that we would waive VAT on the Band Aid anniversary single.
“It’s fantastic that he’s got so many musicians together again to help fight Ebola – and I wanted to make sure every penny raised goes to combat this terrible disease.”
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