Recognition as a charity for tax purposes
To be accepted as a charity for tax purposes a body must be a charity in UK law.
Charities already registered with the Charity Commission or Office of the Scottish Charity Regulator (OSCR)
If your charity is already registered with the Charity Commission or OSCR you will usually be accepted by HMRC Charities as a charity for tax purposes.
If you want to be formally recognised as a charity for tax purposes (eg to make claims for repayment of tax paid on Gift Aid donations) you should write to HMRC Charities (title team) giving details of your Charity Commission or OSCR reference number and your full correspondence address.
We will then set up a tax record for your charity, allocate a reference number for use on all repayment claims and correspondence with us and send you all the documentation you need to make repayment claims.
Organisations that don’t need to formally apply to the Charity Commission for charitable status
Some charitable organisations in England and Wales are exempt or excepted from registration with the Charity Commission but can still be accepted as charities for tax purposes, as long as they are established for charitable purposes only. These include:
- Scout groups (which don’t own land)
- some Royal Charter bodies
- foundation schools
- registered industrial and provident societies
- bodies with annual income of less than £5000 for registrations after 30 April 2007 (the previous limit was £1000)
If your charity falls within one of these groups and you want to be recognised as a charity for tax purposes you should write to HMRC Charities enclosing:
- a copy of your governing documents (eg your trust deed, constitution or memorandum and articles of association etc)
- full details of your charitable activities
- the date of the end of your accounting period
If we are satisfied that you are established for charitable purposes only you will be recognised as a charity for tax purposes. Your registration will be effective from the date when your governing documents were in wholly charitable form.
We will then set up a tax record for your charity, allocate a reference number for use on all repayment claims and correspondence with us and send you all the information you need to make repayment claims.
HMRC recognition of a charity is for tax purposes only. Charities must therefore contact the Charity Commission to seek formal registration as soon as their annual income exceeds, or is likely to exceed £5000 per year.
Further information:
