- ICAS supports extending VAT relief for business donations of goods to charity.
- Current VAT relief applies only to goods donated for sale, not for onward donation or use in charity services.
- The government aims to encourage donations and reduce waste while maintaining VAT system security.
- ICAS emphasizes minimal administrative requirements for donor businesses and charities.
- Suggests restricting relief to registered charities with a certification system to simplify operations.
- Proposes value limits for donated goods, such as a £100 limit, but notes this may not suit all charities.
- Different limits could apply for goods used by charities versus those donated to users, though this may cause issues.
- Highlights challenges with value limits, such as valuation and certainty, and suggests considering alternatives.
Source: icas.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.
Latest Posts in "United Kingdom"
- UK VAT Briefing: Key Updates and Developments (July – August 2025)
- Overview of UK VAT Late Payment Penalties
- Lancer Scott Ltd v HMRC: VAT Assessment, Penalties, and Time Limit Dispute Dismissed by Tribunal
- Raising VAT Rates: A Solution for Budget Deficit and Economic Growth
- Webb v HMRC: VAT Input Tax Disallowance, Exempt Supplies, No Business Activity, Appeal Dismissed
