It differs from country to country, Penguin. It's a legal issue, not a theological issue.
Is it? You've gone off before about how treating religious organizations like similar secular institutions ignores the "special nature of the church".
It should be as I've already asserted in the US. I don't know how it "should" be in Britain. They don't operate off the same Constitution as we do.
I don't operate off your constitution either. The Canadian constitution doesn't say anything about church-state separation; it only establishes the right of the individual to freedom of belief and conscience, and the right of equality of religion. Taxing religious organizations would be constitutional in Canada as long as the taxation was done equitably to all religions.
But to get back to the point I was driving at: earlier (and in other threads), you've put forward an argument that church-state separation is a sort of bargain: that (and I'm paraphrasing here, obviously) the price of having everyone else shoulder the tax burden for religious organizations buys us non-interference in government by those religious organizations... a sort of
Danegeld for churches.
In the case of the UK, religion is not meeting one side of that bargain. What I want to know from you is whether you think that this implies the government isn't required to hold up the other side.