VAT from sales of the X Factor winner’s single will be donated to children’s charities, the Government has announced.
This year’s show was won by 17-year-old Louisa Johnson, who will release her version of Bob Dylan’s Forever Young.
Profits from sales of the release will go to Together For Short Lives and Shooting Star Chase, which both help children with life-limiting illnesses and give support to their families.
The Government will donate the equivalent to the VAT payable on the sales of the single to the charities.
Chancellor George Osborne said: “It is great news that Together For Short Lives and Shooting Star Chase Children’s Hospice are to benefit from the proceeds of this year’s X Factor winner’s single.
“I am a great admirer of the tremendous work that these charities do to support children with life-threatening and life-limiting medical conditions, and those who love and care for them.
“I am very happy to announce that the Government will refund all VAT on sales of the single.
“I urge people go out and buy it in great numbers this Christmas so that as much money as possible is raised to support the charities’ work.
“I hope it will help those families who are going through unimaginably difficult times, at a time of year that must be particularly difficult for them.”
The Government has previously waived VAT on the Save The Children, Band Aid Ebola, 2011′s Military Wives Choir and the 2010 Haiti earthquake appeal singles.