Tax rules clarified for buildings named after donors

Charity advisers raised concerns over ambiguity in information relating to the naming of buildings in new guidance introduced in August 2019 following a review by HMRC of the donor benefit rules. They considered it could be interpreted as saying that the naming of a building after a donor who had given a substantial amount towards its construction would be treated as a donor benefit.

The Charity Tax Group (CTG) raised the matter with HMRC explaining that the new guidance appeared to be contrary to the long-standing arrangement whereby the naming of a building was not treated as a benefit.

HMRC has since confirmed that there had been no change in policy and issued revised guidance.

Chair of the group Richard Bray said: ‘CTG is very grateful that once the matter had been drawn to its attention HMRC acted quickly and positively to clarify the situation.’

HMRC’s gift aid