Applying for recognition as a charity for tax purposes

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 your charity is located.

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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

Once your organisation has been recognised as a charity for tax purposes it may also be entitled to VAT reliefs.

Find out more about the tax advantages of being a charity

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How does your charity apply to be recognised by HMRC for tax purposes

Your organisation can apply to HMRC for recognition as a charity for tax purposes. To do this you need to complete form ChA1.

Charity trustees and anyone involved in the day-to-day running of your organisation should also read the basic guidance on 'Fit and Proper Persons'. This guidance explains the need for charities to ensure that their managers are suitable to hold such posts and, in particular, that they haven't been involved in tax fraud or disqualified from being a charity trustee. It also includes a model declaration managers can sign.

The Fit and Proper Persons test: a basic guide for charity managers (PDF 44K)

Detailed Guidance on the Fit and Proper Persons test

Download form ChA1

Where to send your completed form

You should send your application to HMRC Charities.

HMRC Charities and Community Amateur Sports Clubs contact details

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What happens next?

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

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Contacting the HMRC Charities Helpline

For more help you can contact the Charities Helpline. Select option two for registering a charity for Gift Aid or charitable status.

Contact the Charities Helpline

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More useful links

How to register as a Community Amateur Sports Club with HMRC

Find out more about the Gift Aid scheme

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