Charitable giving and tax reliefs for individuals: Part 2

In this article I will be looking at charitable reliefs and focus on international issues including non-UK charities and non-UK resident and non-UK domiciled taxpayers. This is a complex area and affected clients need to be well-briefed to ensure that they are not caught out by the potential traps.

The article does not consider the charity’s own tax position or the process for a charity to register with HMRC for gift aid.

Defining ‘charity’ for tax purposes

The tax definition of a charity was included in part 1 of this article but is restated here for ease of reference. Under F(No 1)A 2010 Sch 6 para 1 (1) a charity is a body of persons or trust that broadly meets all of the following conditions:

a) it is established for charitable purposes only as defined in the Charities Act 2011;

b) it...