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HMRC Updates VAT Guidance for Charities, Including New Rules on Donated Goods from 2026

  • HMRC has updated VAT Notice 701/1 regarding how VAT affects charities.
  • From 1 April 2026, businesses may not need to account for VAT when donating goods to charities, if certain conditions are met.
  • This applies to goods donated for onward donation or for use in the charity’s non-business activities.
  • Further details are provided in section 5.5.5 of the updated guidance.

Source: rpclegal.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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