Recognition as a charity for tax purposes
HMRC have updated the procedure for applying for recognition as a charity for tax purposes. The benefit of being so recognised includes relief from income tax, corporation tax and capital gains tax. Recognised charities can also claim tax repayments on income received net of tax such as bank interest and gift aid donations.
There is a special form (ChA1) which needs to be completed if a charity wants to be recognised for tax purposes. The form can be accessed from HMRC’s website atwww.hmrc.gov.uk/charities/cha1.pdf and can be saved and completed onscreen.
The completed form should be sent to:
St Johns House
Once HMRC confirm charitable status for taxation purposes a reference number will be issued which should be quoted on all claims and correspondence. HMRC will also provide all the necessary forms to make an initial claim.
There is a special HMRC charities helpline which can be reached on 0845 302 0203.