- The government issued a consultation on the introduction and design of a VAT relief on goods donated to charities to give away free of charge or use in the delivery of their services.
- The consultation sought views on the scope of a relief and the design of its administration.
- At Budget 2025, it was announced that a new VAT relief will be introduced for business donations of eligible goods to charity for distribution to those in need or use in the delivery of their charitable services.
- Timing: the consultation was issued on 28 April 2025 and the government issued the response on 26 November 2025. The new relief will apply from 1 April 2026.
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