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UK Introduces VAT Relief on Donated Goods, Boosting Charitable Giving and Reducing Waste

  • The UK government will introduce VAT relief on donated goods given away for free or used in service delivery starting April 1, 2026.
  • The previous VAT system discouraged donations by creating financial incentives to dispose of surplus goods rather than donate them.
  • The warehousing sector, represented by UKWA, campaigned for this reform to encourage more donations and support circular economy and net-zero goals.
  • UKWA participated in consultations and advocacy efforts, gaining support from key business groups and a former Prime Minister.
  • HMRC will provide guidance for businesses and charities on using the new VAT relief, with UKWA supporting its members through the transition.

Source: ukwa.org.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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