Charities tax compliance
Read the full outcome
Detail of outcome
A 12 week consultation ran between 27 April 2023 to 20 July 2023. This consultation was to explore reasonable and proportionate changes, with the charity sector, on how to reform some tax relief rules that do not work as intended. They would help tackle non-compliance and protect the integrity of the sector.
The consultation sought views on several proposals to:
- prevent donors from obtaining a financial benefit from their contributions
- prevent misuse of charitable investment rules
- address gaps in non-charitable expenditure rules
- introduce sanctions for charities and Charities and Community Amateur Sports Clubs (CASCs) that did not meet their filing and payment obligations
This government has listened to the concerns raised in the consultation and will make incremental changes in all four of these areas, to preserve these important tax reliefs for the compliant majority and help to protect the reputation of the sector. The government will continue to work with the sector on the necessary legislation and guidance, and the changes will come into effect from April 2026.
Original consultation
Consultation description
This consultation seeks views on several areas including:
- tainted charity donations
- approved charitable investments
- non-charitable expenditure
- charity filing obligations
The government intends that any changes would not detract from the overall generosity of the reliefs or impact on legitimate charities.
This consultation will be of particular interest to Charities and Community Amateur Sports Clubs (CASCs), as well as their donors.
Documents
Updates to this page
Last updated 30 October 2024 + show all updates
-
Published outcome and summary of responses to the consultation.
-
First published.