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This site provides comprehensive information about the taxation of charities and tax reliefs for gifts to charity.

If you are looking for a quick answer to a straightforward question, we recommend HMRC tax guidance for charities or HMRC detailed guidance notes.

If you are looking for a deeper analysis, or an impartial view, you are in the right place.

Contents

Update

Introduction

1 Policy Issues in Charity Taxation

2 Tax Avoidance and Evasion

3 Definitions of "Charity"

3A Restriction to UK Charities Commencement

4 Taxation of Charity Income

5 Taxation of Charity Gains

6 Charitable Expenditure Rules

7 Tainted Donation Rules

8 Trading by Charities

9 Companies held by Charities

10 Business Sponsorship and Advertising

11 Charitable Companies

12 Employees & Beneficiaries of Charities

13 Acquisition of Companies

14 Double Taxation Treaties and Charities

15 Cash Gifts from Individual to Charity (Gift Aid)

16 Gift Aid Small Donations Scheme

17 Corporate Gift Aid

18 Giving by Businesses to Charity

19 Payroll Giving Scheme

20 Interest-Free Loans to Charity

21 Gifts of Shares/Land to Charity

22 Gifts of Works of Art to Charity

23 CGT Relief on Disposals to Charity

24 Inheritance Tax Reliefs for Charities

25 Charity Legacy Relief

26 Will Drafting

27 Share of Estate Given to Charity: Benham Issues

28 Obtaining Income Tax and IHT Reliefs on Gift by Will or IoV

29 Variation of Wills

30 Benefits for Donors

31 Trusts with Some Charitable Element

32 Payments to Charity From Non-Resident Trusts

33 Estates of Deceased Persons: CGT

34 Estates of Deceased Persons: Income Tax

35 VAT: Basic Concepts

36 Recovery of Input VAT

37 VAT: Exemption

38 VAT: Zero Rating

39 Stamp Duties & Transaction Taxes

40 Non-Domestic Rates

41 Sports Clubs

42 Clubs and Mutual Concerns

43 Political Parties

44 Housing Associations

45 Local Authorities

46 Social Investment Relief

47 Administration: Tax Returns and Claims

Appendices

Appendix 1: International Entity Securities: Approved Charitable Investments

Appendix 2: Model Gift Aid Declarations

Appendix 3: Retail Gift Aid: Template Letters

Appendix 4: CASCs: Eligible Sports

Appendix 5: Deemed Charities and National Bodies

Appendix 6: Accreditation of Social Impact Contractors

Appendix 7: Substantial Donor Rules

Appendix 8: How to Improve the Taxation of Charities

Appendix 9: Bibliography

2022/23 edition

The 2022/23 edition of Taxation of Charities and Nonprofit Organisations is available online and in paper form. The 2023/24 edition of Taxation of Charities Online is based on the last paper edition (2022/23) updated for some post-publication developments.
In April 2023 HMRC published a consultation paper Charities tax compliance. Although this does not seem particularly controversial, progress seems to have stalled. The consultation period finished July 2023, but HMRC have not yet published a consultation response. Perhaps further reforms are in prospect; but that is a matter of speculation. No doubt the proposals will be eventually enacted, in one form or another, and a new edition of this work will then follow.
The authors of the next edition will be James Kessler KC, Etienne Wong (who is responsible for the VAT chapters) and Shanzé Shah.

How to login

Most of this site requires you to login.

To obtain a login licence you need to order a copy of the book associated with this site, Taxation of Charities and Nonprofit Organisations, and you can then register for the life of the edition and login.

Users who are charities may register for a free one day trial.

If you are an academic, student or other non-tax practitioner who wants access for research purposes, contact James Kessler

Without logging in you can access:

Introduction

Chapter 1 Policy Issues in Charity Taxation

Chapter 2 Tax Avoidance and Evasion

Comments please

Users may also contribute to the text, and if you can add anything, or spot anything that needs to be corrected, please do! A copy of the next edition of our book will be given to the user who makes the most edits. User contributions are reviewed by Shanzé Shah .

If you want further advice

If you do not find the answer to your question in ToC Online, or if you want advice on which you can legally rely, you may instruct authors James Kessler KC (direct tax) or Etienne Wong (VAT) to advise. See How to instruct James Kessler KC and Etienne Wong.

Archive editions

There are archive editions for years from 2005/06. These will be useful to investigate the tax position in those years, but the current edition will generally be the best starting point, as that has been written in the light of current HMRC guidance, and further thought and research.

Contact

If you have technical problems, or problems logging in click here

To contact James Kessler KC click here

To contact Etienne Wong, who is responsible for the VAT chapters, click here

To contact Shanzé Shah click here

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Technical notes

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ToC Resource Archive

To access the ToC reference material, click here ToC Resource Archive