UK Budget Removes VAT Barrier for Businesses Donating Surplus Goods to Charities

• Businesses can now donate surplus goods to charities without incurring extra VAT costs.
• The new rules remove the previous tax advantage of scrapping goods over donating them.
• The change encourages charitable giving and includes safeguards against abuse.
• The VAT relief takes effect from 1 April 2026 for qualifying donations to registered charities.

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.

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