In this section:
- Charities and tax: the basics
- Applying to HMRC for recognition as a charity for tax purposes
- How to reclaim tax on Gift Aid and other income
- Understanding and promoting types of tax-efficient giving
- Tax and charitable or non-charitable expenditure
- Charity trading profits: tax obligations and reliefs
- Tax returns for charities and Community Amateur Sports Clubs
Applying to HMRC for recognition as a charity for tax purposes
UK charities can claim tax relief on income and gains, and on profits from some activities, as well as claiming tax back on income received on which tax has already been paid, for example on bank interest and Gift Aid donations.
Before you can take advantage of these tax reliefs and make tax repayment claims, your charity needs to be formally recognised by HM Revenue & Customs (HMRC) for tax purposes.
This guide explains how to apply to HMRC for recognition. The requirements vary according to where in the UK your charity is located (England, Wales, Northern Ireland or Scotland).
On this page:
- Why does your charity need to be recognised by HMRC for tax purposes?
- Applying to HMRC if you're registered with the Charities Commission or the Office of the Scottish Charity Regulator (OSCR)
- Applying to HMRC If you're not registered with the Charities Commission or OSCR
- What happens next
- Contacting the HMRC Charities Helpline
- More useful links
Why does your charity need to be recognised by HMRC for tax purposes?
Your organisation must be recognised as a charity for tax purposes so that:
- you can benefit from the tax reliefs available to charities - including relief from Income or Corporation Tax and Capital Gains Tax
- you can claim tax repayments, for example on bank interest and Gift Aid donations
- HMRC Charities is aware of your existence - this will be helpful if you need to call the Charities Helpline for information on a tax issue
Your charity is also entitled to certain VAT reliefs. Charities registered with the Charity Commission in England and Wales are automatically entitled to claim these special VAT reliefs.
Charities that are not registered with the Charities Commission (including charities in Scotland that are registered with the Office of the Scottish Charity Regulator (OSCR), and charities in Northern Ireland) must be formally recognised by HMRC for tax purposes before they may claim the charity VAT reliefs.
Find out more about the tax advantages of being a charity
Applying to HMRC if you're registered with the Charities Commission or the Office of the Scottish Charity Regulator (OSCR)
If your organisation has already been registered as a charity by the Charities Commission or OSCR, this will usually be accepted as sufficient evidence for HMRC to consider you as a charity for tax purposes.
You'll need to give us some basic information about your charity:
- the name and full postal address of your charity
- your charity registration number - from the Charities Commission or OSCR
- the names of your trustees
- the date on which your accounting period ends
Rarely, because of differences between Scottish charity law and UK tax law, a body that is entered on the Scottish Charity Register may not be entitled to the charity tax reliefs. OSCR will tell HMRC and the charity trustees if it appears that aspects of a Scottish charity's constitution may not satisfy HMRC's requirements. In these cases, HMRC may sometimes need to request additional information from the charity.
Applying to HMRC if you're not registered with the Charities Commission or OSCR
If your charity is in England or Wales
You must register with the Charities Commission before contacting HMRC, unless your charity is exempt from registering. If your charity is exempt from registration with the Charities Commission, HMRC will still consider you as a charity for tax purposes if it is satisfied that you're established for charitable purposes only.
Examples of organisations where this might apply include:
- Scout and guide groups
- some Royal Charter bodies
- foundation schools
- some registered industrial and provident societies - mainly charitable housing associations/registered social landlords, community transport associations, arts centres and sports centres
- bodies with an income of less than £5,000
If you're exempt from registering with the Charities Commission, you need to send HMRC
- the name and full postal address of your charity
- the names of your trustees
- a copy of your governing document - for example your trust deed, constitution or memorandum and articles of association etc
- details of your charitable activities - how you intend to carry out the charitable aims and objectives for which your charity was set up
- any literature which explains the work of your charity
- the date to which your accounts will be prepared
Find out about registering as a charity in England and Wales on the Charity Commission website
If your charity is in Northern Ireland
You need to send HMRC:
- the name and full postal address of your charity
- the names of your trustees
- a copy of your governing document - for example your trust deed, constitution or memorandum and articles of association etc
- details of your charitable activities - how you intend to carry out the charitable aims and objectives for which your charity was set up
- any literature which explains the work of your charity
- the date to which your accounts will be prepared
If your charity is in Scotland
You need to apply to OSCR before contacting HMRC. In most cases entry into the Scottish Charity Register will entitle a body to the charity tax reliefs (see above 'If you're registered with the Charities Commission or OSCR'). However, because of the different requirements of OSCR and HMRC it is possible that a body that is not entered on the Scottish Charity Register may still be entitled to the charity tax reliefs.
If OSCR has decided not to enter you on the Scottish Charity Register, you need to send HMRC:
- a copy of the letter from OSCR explaining why registration has been denied
- the name and full postal address of your charity
- the names of your trustees
- a copy of your governing document - for example your trust deed, constitution or memorandum and articles of association etc
- details of your charitable activities - how you intend to carry out the charitable aims and objectives for which your charity was set up
- any literature which explains the work of your charity
- the date to which your accounts will be prepared
Find out about registering as a charity in Scotland on the OSCR website
Where to send the documents
You should send your application to:
HMRC CharitiesSt Johns House
Merton Road
Liverpool
L75 1BB
What happens next?
The application process takes around 15 working days for most charities registered with the Charity Commission or OSCR.
If your Charity is not registered with the Charity Commission or OSCR it may take up to 40 working days for HMRC to consider the application.
Once HMRC Charities recognises you as a charity for tax purposes, they'll set up a record so that any repayment claims you make can be processed.
They'll then send you:
- your reference number for use on all claims and correspondence
- all the forms needed for your first repayment claim
- the date from which your charitable status is effective
Find out how to reclaim tax on Gift Aid and other income
Contacting the HMRC Charities Helpline
For more help you can contact the Charities Helpline on Tel 0845 302 0203 (open from 8.00 am to 5.00 pm, Monday to Friday). Select option 2 for registering a charity for Gift Aid or charitable status.
More useful links
How to register as a Community Amateur Sports Club with HMRC
