- From 1 April 2026, businesses can donate goods to charities without incurring VAT, subject to certain conditions.
- Previously, VAT charges applied to such donations under business gift rules.
- HMRC has detailed the new rules and conditions in VAT Notice 701/1, including value limits and definitions of qualifying goods and charities.
- The change encourages donations of surplus or unsold stock, supporting charities and sustainability goals.
- Businesses must review the guidance carefully and keep proper records to ensure compliance.
Source: saffery.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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