When do charities pay or not pay tax?
13 Jun, 2018
The tax treatment of charities is complex. Many charities trade either as part of their charitable interests or to raise funds. As a first step, any charity hoping to claim from beneficial tax treatment needs to be recognised as a charity for UK tax purposes
by HMRC as well as meeting other criteria.
A recognised charity may qualify for a number of tax exemptions and reliefs on income and gains, and on profits for certain activities. For example, charities don’t pay tax on most types of income as long as they use the money for charitable purposes.