A Lancashire charity that offers free care to terminally ill children has been hit by a staggering £350,000 tax bill.
After raising £2M to build a new development for young adults, Derian House in Chorley has been told it will now have to stump up the rest of the cash to cover a huge VAT bill.
The demand made by HM Revunue and Customs, are for building materials used to construct the four bedroomed house used to accomodate young adults.
Relying solely on donation to run keep the charity running, staff and patients are hoping the government will retract the demands.
Chair of trustees for Derian House, Margaret Vinton has called the tax bill 'shameful' and claims customs are taxing people twice.
Mrs Vinton said: "We rely solely on donations to keep the charity running and those who donate have already been taxed themselves.
"To tax us again feels like customs are getting a double tax.
"It costs around £1.7m per year to run the house, but every child that stays with does it free of cost.
"We provide help, relief and support to families going through a very traumatic time and now we would like a little support from the government with this bill.
"Our donors have promised to help with what they can but we have to find the money regardless because building work has started."
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