- UK Treasury and HMRC are consulting on VAT relief for business donations to charities
- The relief would apply to goods donated by businesses for free distribution or service delivery by charities
- Current VAT exemptions do not cover these areas
- Possible measures include limiting relief to registered charities or those focused on poverty relief
- A cap on VAT-free donation value per recipient is being considered but may be hard to enforce
- Consultation is open until 21 July 2025
- Government seeks input to make the relief practical, targeted, and fraud-resistant
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
