Detailed tax guidance for charities
How to register a charity for tax, charities' tax obligations, and the reliefs and exemptions available.
Documents
Details
This guidance is about the direct tax obligations of charities and the reliefs available to them. Where appropriate there’s also information about indirect tax (VAT) obligations and reliefs for charities.
The information gives charities access to the most up to date information available about their tax obligations and any reliefs available to them.
Chapter 1 and Annex v have been withdrawn.
Updates to this page
Last updated
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Section 6.3.9 of Chapter 6 has been updated to explain that a trustee signature is required when submitting a tax return for a charitable trust.
Update history
2025-04-09 10:18
Chapter 2 has been updated to make it clear only charities established in the UK are recognised for tax purposes by HMRC.
2025-02-26 14:38
Section 6.3.9 of Chapter 6 has been updated to explain that a trustee signature is required when submitting a tax return for a charitable trust.
2025-02-21 15:05
Explanation that a charity’s filed tax return should be signed or countersigned by a trustee added to Chapter 6: Claims and returns in section 6.3.9. Added note that Chapter 1 and Annex v have been withdrawn.
2024-03-27 08:15
Section 8.3 of Chapter 8: The Gift Aid Small Donations Scheme from 6 April 2017 has been updated to remove a reference to checking for multiple donations from the same person.
2024-03-11 12:33
Paragraph 3.13.2 has been updated to show where you can find information about restrictions on relief for loan waivers by corporate entities.
2024-02-29 14:57
Section 3.45 of Chapter 3 has been updated to provide examples of Gift Aid on waived funds and loan repayments for individuals and companies.
2024-01-05 13:48
Update to correct an error in section 22.2 of Chapter 3: Gift Aid. We have adjusted the figures used in our calculations to make sure the aggregate value test produces the same pass or fail outcomes as before.
2023-12-07 15:49
In Chapter 8: The Gift Aid Small Donations Scheme from 6 April 2017, section 8.1 has been updated to clarify that top-up payments on chip and pin donations can be claimed. Section 8.3 has been updated to explain that a Community Amateur Sports Club must keep records of chip and pin donations made through bank accounts and terminals for their claims.
2023-11-24 10:29
Sections 3.4.1 and 3.13.1 of Chapter 3 have been updated to explain that cryptoassets must be converted to money before donations are eligible for gift aid.
2023-10-19 13:58
A link to the driver expenses manual has been added to chapter 3, section 3.41.10.
2023-08-02 14:56
In section 4.7 of Annex iii, we have removed guidance about ‘Programme Related Investments’ and ‘Mixed Motive Investments’ and replaced with ‘Social Investments’. At section 4.13, the Ethical Investments section has been updated to confirm the Charity Commission no longer uses the terms Mixed Motive Investment and Programme Related Investment, but HMRC recognise charities may still use these terms.
2023-07-11 15:58
Chapter 3.13.2 has been updated to explain the waiving of a refund or loan repayment by an individual can be considered a donation if certain conditions are met.
2023-07-05 15:23
Chapter 3, Section 3.4.5 has been updated to make it clear that donations made by an individual waiving a refund or a loan repayment due from a charity, can be considered a donation of a sum of money where there is a clear agreement to cancel a loan or not accept a refund.
2023-04-17 15:47
In Chapter 8: The Gift Aid Small Donations Scheme before 6 April 2017, the amounts in example 2 at Chapter 8.19.9 have been changed for consistency.
2023-03-17 13:35
Guidance has been updated to explain that charities based in the EU, Iceland, Liechtenstein or Norway can no longer apply to get tax relief. If you got tax relief on or before 14 March 2023, you will continue to get it until April 2024.
2023-01-20 12:03
Section 3.4 of ‘Chapter 3: Gift Aid’ has been updated to clarify when donations may incur an administration fee and when these fees are treated as charitable expenditure. Some of the information in chapter 3.45 has been removed as it is currently out of date.
2022-11-18 14:05
Section 3.45.4 of ‘Chapter 3: Gift Aid’ has been updated, to clarify how a refund arrangement can be waived so Gift Aid can apply.
2022-10-19 14:26
The guidance on loan waivers and loan repayments has been updated to clarify the requirements for each to be considered a qualifying donation for Gift Aid relief. New sections have been inserted at 3.13.2, 3.13.3, 3.45.6 and 3.45.7. Amendments have also been made to 3.45.1, 3.45.3 and 3.45.4.
2022-10-13 12:42
Chapters 3.42.11 and 3.42.12 of Gift Aid guidance have been updated to explain how to use letter templates and to ask for them to be issued from the end of year 3.
2022-04-21 15:37
The sections about acknowledgements and naming rights in Chapter 3: Gift Aid, have been updated to clarify when the acknowledgement of an individual, or naming of a building after an individual or business, is considered to be a benefit or an advertisement. Information about help during the coronavirus (COVID-19) period has been removed.