UK Charity Tax Reliefs for Certain European Organisations
Legislation will be introduced to extend UK charity tax reliefs to certain organisations equivalent to UK charities and Community Amateur Sports Clubs (CASCs) in the EU, Norway and Iceland. Other changes will also be made.
A new definition of an organisation eligible for charity tax reliefs and exemptions will be introduced. Broadly, the organisation must be set up for charitable purposes only, be located in an EU member state or other specified territory (currently Norway and Iceland), be regulated in their home country and be supervised by ‘managers’ who are ‘fit and proper’ persons. CASCs will also be required to meet the ‘location’ and ‘managers’ conditions.
Further changes will ensure that:
- organisations apply donations received under payroll giving for charitable purposes in order to obtain tax exemption;
- UK charities making payments outside the UK take more steps to ensure monies are used for charitable purposes;
- certain rules relating to Gift Aid apply equally to UK resident and non-UK resident donors; and
- new procedures for making tax repayments to charities under Gift Aid will apply.
Most of the new rules will have effect later in 2010/11, although restrictions on payments of charity funds overseas and payroll giving will apply with effect from 24 March 2010 and the new definitions and Gift Aid provisions will apply to donations made on or after 6 April 2010. Claims to tax relief in respect of certain donations made to non-UK charities between 28 January 2009 and 31 March 2010 inclusive will be considered