Charities and tax
Tax reliefs for charities
As a charity you do not pay tax on most of your income and gains if you use it for charitable purposes - this is known as 바카라 사이트˜charitable expenditure바카라 사이트™.
This includes tax:
- on donations
- on profits from trading
- on rental or investment income, for example bank interest
- on profits when you sell or 바카라 사이트˜dispose of바카라 사이트™ an asset, like property or shares
- when you buy property
To get tax relief you must be recognised by HM Revenue and Customs (HMRC).
Community amateur sports clubs (CASCs) get different tax reliefs.
When you do pay tax
Charities pay tax on:
- dividends received from UK companies before 6 April 2016
- profits from developing land or property
- purchases - but there are special VAT rules for charities
Charities pay business rates on non-domestic buildings, but they get an 80% discount.
You must pay tax on any money you do not use for charitable purposes. This is known as 바카라 사이트˜non-charitable expenditure바카라 사이트™.
Pay tax
You must complete a tax return if your charity needs to pay tax or if HMRC asks you to.
Reclaim tax
You can claim back tax that바카라 사이트™s been deducted, for example on:
- donations (this is known as Gift Aid)
- bank interest