Extension of charity tax relief
HMRC have published a new questions and answers guide on the extension of UK charity tax relief. This follows an announcement by the Chancellor in this year’s Budget to extend UK charity tax reliefs to certain organisations which are equivalent to UK charities and Community Amateur Sports Clubs in the EU, Norway and Iceland. This followed a European Court of Justice Judgement on the matter in January 2009.
The document makes it clear that most existing UK charities will not be affected by this change. There are 38 separate questions and answers in the guide which is divided into the following sections:
- Existing UK Charities
- New UK and non-UK charities
- Fit and Proper Persons Test
- Community Amateur Sports Clubs
- Donor questions
The extended definition of a charity will be relevant as regards donations made by individuals on or after 6 April 2010. This change will benefit UK donors who will be able to obtain tax relief for donations to qualifying charities in the EU, Norway and Iceland.