Tainted Charity Donation Rules – update

HMRC has updated its guidance to clarify how the “Tainted Charity Donations Rules” apply. A donation to a charity with no linked transactions is not affected by the Tainted Charity Donation Rules, nor is a donation that may provide benefits to the donor if those benefits are permitted under the gift aid rules. The Tainted Charity Donations rules only apply to donations that provide rewards to the donor above the gift aid threshold, or donations where there are linked transactions. Charities should ensure that procedures are in place to enable staff to spot donations that may be “tainted”.

IBB Solicitors’ specialist Charities team has a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. For advice, contact a member of the team, call us on 01895 207809 or email charities@ibblaw.co.uk.