Tax break for Live Aid single

Band Aid will benefit from a VAT refund of more than 4m on sales of its latest charity single.

15:26 07 November 2004

Band Aid will benefit from a VAT refund of more than 4m on sales of its latest charity single.

Chancellor Gordon Brown will allow the charity to retain the VAT that is paid on sales of its new DVD and remix recording of the 1984 hit Do They Know It's Christmas.

Twenty years after the original song sold 3.5 million copies in Britain, co-writer Midge Ure has brought together a new generation of stars to raise further funds for the fight against poverty in Africa.

The updated version of the song features artists such as Noel Gallagher, Damon Albarn and Dido.

Live Aid founder Bob Geldof was first spurred into action by television reports of the 1984 famine in Ethiopia. His efforts to highlight the plight of the country's people and raise money for their cause culminated in the first Band Aid single and a renowned global pop concert.

It is hoped that the latest remix of the single, which is being released next month, will keep up the pressure on Western governments to help Africa out of poverty.

Announcing a repeat of the exercise that allowed Band Aid to keep VAT revenue from the original single, the chancellor said:

"Ever since its launch 20 years ago, Band Aid has had a huge impact, raising the plight of the world's poorest and raising funds to help them.

"I want to do everything I can to support their work and so people can buy the DVD and record this Christmas knowing that all the money they spend will go to support the vital work of the Band Aid Trust in the poorest countries of Africa."

Welcoming the news, Mr Geldof described the chancellor's decision as a "remarkable gesture" that would help alleviate the misery of hunger in Africa.

The Band Aid Trust, the charity that administers funds raised by Band Aid and Live Aid activities, has distributed 79 million for famine relief in a number of African countries since 1985.