- HMRC ran a consultation in 2023 to ask for comments on proposed changes to the tax reliefs available for charities and Community Amateur Sports Clubs.
- The purpose of the changes is to tighten the existing legislation to reduce the perceived misuse of the charity tax reliefs by a minority of charities and donors.
- HMRC consulted on the four key areas where they consider the charity rules are not working as intended: preventing donors from obtaining a financial advantage from their donation, preventing abuse of the charitable investment rules, closing a gap in non-charitable expenditure rules and sanctioning charities that do not meet their filing and payment obligations.
- The proposed changes are not intended to impact the majority of compliant charities.
- Timing: the government intends to continue to work with the sector on the necessary legislation and guidance, and the changes will come into effect from April 2026.
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