Refunding tickets for cancelled charity events during coronavirus (COVID-19)
Find out about changes to help charities process refunds, collect donations and claim Gift Aid for events cancelled due to coronavirus (COVID-19).
To help reduce administrative burdens on charities, if a charity event is cancelled due to coronavirus (COVID-19), HMRC will accept that where a person due a refund decides to donate this to a charity, the requirements of S416 ITA07 are met provided:
- the individual
- does not receive a benefit as a result of their donation
- agrees that the cost of their ticket becomes a donation
- completes a Gift Aid declaration
- the charity keeps an audit trail, including a copy of the agreement from an individual agreeing to the donation of the cost of the ticket
The charity no longer has to physically refund the ticket price for the individual to re-donate.
Events impacted by the change
Any ticket for a charity event which has been cancelled due to the coronavirus (COVID-19) is eligible for these temporary changes.
Events not impacted by the change
If the charity event has been postponed and not cancelled, any tickets for that event are not eligible for the temporary changes.
Process to follow
The charity must:
- contact the individual who previously purchased the tickets of the cancelled event
- explain that the individual is entitled to a refund but may wish to donate the cost of the ticket to the charity
- make it clear that the individual does not have to donate the refund but if they choose to donate it, it’s non-refundable
- make sure the individual has enough tax to cover the donation
- document the conversation with the individual and keep records of this
- ensure that there is a Gift Aid declaration in place for the individual