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New VAT Relief Introduced for Business Donations of Goods to Charity, Effective Autumn 2025

  • HM Treasury will introduce a new VAT relief for business donations of goods to charity for onward distribution or use in charity services, as announced in Autumn Budget 2025.
  • The relief aims to encourage charitable donations, reduce waste, and prolong the life of goods, with strong support from respondents.
  • Most respondents favored a £100 per item threshold for eligible goods, though some raised concerns about excluding higher-value items.
  • The relief will broadly cover categories like electronics, white goods, hygiene products, and clothing, but exclude alcohol, tobacco, and luxury goods.
  • Safeguards will be implemented to prevent charities from being burdened with unusable or poor-quality goods.

Source: rossmartin.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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