Cookie PolicyWe use cookies to enhance your experience while using our website. We will take your continued use of our website as consent to our use of cookies.

 

      

Legal 500 Awards

Awards

charities and social enterprises sector banner

Charities

If you work for a charity and need legal advice or assistance about anything regarding tax, our specialist solicitors are here to help.


At Lupton Fawcett, we have a unique understanding and approach when it comes to helping charities with their tax requirements. Our clients find this to be particularly useful as charity tax is a complicated topic as charities have a unique tax status compared to other kinds of organisations.

We are one of the few law firms in the Yorkshire region that specialises in this area. We collaborate with our dedicated Charities & Social Enterprises Group, which works closely with charitable and socially based enterprises and not-for-profit organisations across the region.

Our expert solicitors - based in Leeds, Sheffield and York - are here for you if you would like to discuss your charity’s tax reliefs, exemptions or responsibilities. Call 0333 323 5292 or complete the online enquiry form at the side or bottom of the page. Alternatively, you can speak with Julian Moran, the Head of Tax at Lupton Fawcett.

About charity tax

Charities are entitled to relief from tax in certain situations, and to be entitled to these reliefs they must meet certain conditions. They must be:

  • Established for charitable purposes only

  • Run by fit and proper persons - charities must choose a maximum of two authorised officials to manage the charity’s tax, and responsible persons to be legally accountable for running the charity. All of these people must be proven, via the provision of a signed declaration to HM Revenue and Customs (HMRC), to be fit to run the charity

  • Based in the UK, EU, Iceland, Liechtenstein or Norway

  • Registered with the Charity Commission or other relevant regulator, if required to register

  • Be recognised by HMRC and provided with a HMRC charity reference, which can be achieved by using the HMRC’s online service

Tax reliefs

Charities do not have to pay tax on:

  • Donations
  • Profits made when selling or disposing of an asset

  • Property purchases

  • Rental or investment income

  • Profits from trading

If you work for a community amateur sports club (CASC), you are entitled to slightly different tax reliefs, details of which can be found here.

Charities complete a tax return and pay tax on:

  • Profits from developing land or property

  • Dividends from UK companies before 6th April 2016

  • Purchases, although there are different VAT rules for charities that need to be taken into account. More information can be found here

  • Business rate (with an 80% discount) on non-domestic buildings

  • Non-charitable expenditure

In addition, charities are entitled to claim back tax that has been deducted, for example on donations via Gift Aid or on bank interest.

Our services

Our expertise includes advising on:

  • Gifts to charities

  • The new social investment tax relief (for qualifying investments in charities and social enterprises)

  • VAT issues in connection with charities and social enterprises purchasing and developing land such as:

    • disapplication of option to tax

    • potential for zero rating

    • new developments and extensions

    • group VAT registration

  • VAT issues generally

  • Availability of charitable reliefs and exemptions (from income tax, corporation tax, CGT and SDLT)

  • Tax restructuring of activities

Our recent experience includes:

  • Discussing VAT issues with seller in connection with a dis-application of the option to tax (where buyer was intending to convert building to Relevant Charitable Purpose (RCP) use)

  • Advising on ability for a charity to structure activities using a group structure to maintain charitable exemptions for direct tax purposes and enable VAT registration and input VAT recovery for certain income streams

  • Advising on zero rating for construction services and materials in relation to RCP and Relevant Residential Purpose (RRP) buildings

  • Advising on the potential for zero rating for onward supply of an RRP building

  • Advising on 10 year certificate for zero rated and reduced rate building works for RRP or RCP use and advice on change of use of certificated buildings

  • Advising on potential to mitigate VAT on supplies of staff to exempt / non-business entities

  • Advising a community amateur sports club in respect of potential tax liabilities in the context of a proposed disposal of property subject to a historic charitable trust

Contact us

If you would like to speak to our solicitors - based in Leeds, Sheffield and York - about anything relating to charity tax, feel free to get in touch today. Call 0333 323 5292 or complete the online enquiry form at the bottom of the page. Alternatively, you can speak with Julian Moran, the Head of Tax at  Lupton Fawcett.

Get in Touch

With Lupton Fawcett on your side, you're taking control. Contact us today.

Enquiry Form

Please complete this form to make an enquiry and we will get back to you as soon as we can.

Remember you can still call us on 0333 323 5292 or email us at cseg@luptonfawcett.law.

 Yes
 No
Get in Touch