IHTM11123 - Procedure: checking the exemption
If charity exemption has been claimed, the Risk Assessors (IHTM07100) may decide whether to accept or check the claim, based upon the information already received and the tax at stake. If they accept the claim then you need take no further action.
Where the Risk Assessors instruct you to check the availability of exemption you should proceed as follows:
Service caseworkers
Check the HMRC Charities databases (IHTM11136) yourself. You should only accept that an organisation is a charity where the name of the organisation in the Will matches exactly one on the databases. If the name does not match exactly, you should proceed on the basis that the body is not on the databases and follow the instructions below.
If you are unable to find the body on the databases consider the availability of exemption for National Purposes (IHTM11221) or whether the gift falls within the limited circumstances (IHTM11135) under which it may be taken to be charitable. If it does not fall within either of these additional categories you should refer the case to the risk team.
Compliance caseworkers
The risk team will check the HMRC Charities databases as part of their standard research (IHTM09263) procedure on files selected for working in Compliance. If the risk team cannot positively identify the organisation as a qualifying Charity or, if the bequest is not an outright bequest, they will make a suitable note of this. If you are not satisfied that the terms of the bequest qualifies for exemption under IHTA84/S23 you should make further enquiries of the taxpayer or agent.
If you have any doubts about the status of a charity that is not registered with the Charities Commission or approved by HMRC Charities, you should suggest that the charity concerned applies for approval on a Charities application form ChA1
Ultimately, if you are unable to confirm that a body is a charity and the taxpayer or agent cannot demonstrate that it is and the charity is not willing to apply for approval, the exemption should be refused. Any objection to this should be referred to Technical.
