Tax Advice and Compliance

Contrary to popular belief, charities are not exempt from taxation. Rules on donor benefits and substantial donors can affect income tax and capital gains tax reliefs whilst trading activities can bring charities within the ambit of corporation tax and VAT. In addition, Gift Aid donations require proper management. The rules on charity taxation can be complex and need to be adhered to carefully to maximise a charity’s relief from tax.

We can advise charities on all aspects of tax compliance, from lodging returns for the recovery of tax paid and claiming relief on Gift Aid donations to negotiating tax charges with HM Revenue & Customs where the normal charities’ reliefs do not operate. Putting in place structures to avoid exceeding trading thresholds is key to maintaining a tax-efficient structure for many charities and the combined expertise of our tax lawyers and tax managers can assist in creating the most tax-effective architecture for operating charities.