- The Budget introduces a new VAT relief for business donations of surplus goods to charities, effective from 1 April 2026.
- The relief removes the VAT charge on donated goods below certain value thresholds (£200 for specific items like white goods and electronics, £100 for other goods).
- Eligible goods include food, hygiene products, clothing, household items, surplus stock, and customer returns, with broad eligibility for any registered charity.
- Businesses must obtain certification from recipient charities and keep records to qualify for the relief.
- The change is expected to encourage more donations to charities, benefiting both businesses and charitable organizations.
Source: grantthornton.co.uk
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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