[]

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?

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

Top

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.

Top

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 Charities
St Johns House
Merton Road
Liverpool
L75 1BB

Top

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

Top

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.

Top

More useful links

How to register as a Community Amateur Sports Club with HMRC

Find out more about the Gift Aid scheme

Top

Business Link access to better business - opens Business Link homepage in a new window | © Crown Copyright | Terms & conditions | Privacy policy | Accessibility | Directgov straight through to public services - opens Directgov homepage in a new window