Charity Compliance Measures
The government intends to tighten the legislation in relation to charitable giving, to prevent abuse of the charity tax rules. The measure aims to ensure that only the intended tax relief is given to charities.
These changes will take effect from April 2026.
The aims are:
- To strengthen HMRC compliance powers to act when a donor gives to a charity with the intention of receiving an advantage;
- To make it explicit that all investments by charities that qualify for charitable tax reliefs must be for the benefit of the charity and not the avoidance of tax; and
- To extend the existing rule that charities’ tax-relieved income must be spent on charitable activities to income received from legacies.
