Restriction of Charitable Reliefs to UK Charities and Community Amateur Sports Clubs
This measure restricts charitable tax reliefs to UK charities and Community Amateur Sports Clubs (CASCs). This will stop EU and EEA charities and CASCs that HMRC has not previously accepted as qualifying for charitable relief from claiming UK tax reliefs from 15 March 2023. EU and EEA charities that HMRC has previously accepted as qualifying for relief will have a transitional period until April 2024. Restricting UK tax reliefs to UK charities and CASCs takes advantage of opportunities arising from the UK's exit from EU. Having left the EU it is right that UK taxpayer money should support UK charities and CASCs.
Documents
Details
This measure will change the tax definition of a charity, set out in Paragraph 2, Schedule 6 to Finance Act 2010, or Community Amateur Sports Club (CASC), set out in section 661A of Corporation Tax Act 2010. Currently charities or CASCs located in the UK, EU or the EEA could qualify for charitable tax reliefs in the UK.
The measure will change this for charities so that only those that come within the jurisdiction of the High Court in England, Wales or Northern Ireland, or the Court of Session in Scotland will qualify for UK charitable tax reliefs. This will also mean that CASCs must be based in the UK and provide facilities for eligible sports here to qualify for charitable relief.
This measure takes effect from 15 March 2023 for any charity or CASC that have not previously been accepted for charitable tax reliefs. For non-UK charities and CASCs that have previously been accepted for charitable tax reliefs at 15 March 2023 there will be a transitional period until April 2024. From April 2024, all non-UK charities and CASCs will no longer be eligible to claim UK charitable tax reliefs.
From 15 March 2023, any new applications by charities or CASCs to be recognised by, or registered with HMRC will need to comply with the new tax definition.