[Matt]

Darling gives X Factor charity song VAT boost

A charity X Factor song raising money for injured service personnel received a financial boost from the government today.

Alistair Darling in effect axed VAT on the single, Hero, sung by the 12 X Factor finalists.

The chancellor said the Treasury would make a donation to the Help for Heroes campaign equivalent to the tax revenue collected on the song.

The Mariah Carey cover was released on Monday and Darling said he was taking the action in recognition of the efforts made by the X Factor contestants.

Labour's Karen Buck (Regent's Park and Kensington North) raised the issue at Treasury question time in the Commons, saying: "As things stand they are liable for VAT on the proceeds. I wonder if there is anything you can do to help?"

Darling replied: "I very much support the Help for Heroes campaign and I support too the efforts being made by the X Factor contestants, and in recognition of that I am proposing effectively to waive VAT on this sale of these singles.

"We will do that by making a donation equivalent to the value of the VAT to the fund."

Source: MediaGuardian.co.uk