HMRC has updated VAT Notice 701/1 to reflect the restriction on UK charitable status introduced by F(No. 2)A 2023 s 344.
Although the revised notice has removed the Isle of Man, EU, Iceland, Liechtenstein and Norway from section 2.1 which sets out the basic eligibility requirements for organisations which intend to claim charity VAT reliefs (therefore restricting reliefs to charities which are based in the UK), it does not appear to cover the situation where an existing non-UK charity had previously asserted its status for the purpose of UK tax reliefs.
From 15 March 2023 (the date of Spring Budget 2023), EU and EEA charities are no longer eligible to claim UK tax reliefs unless they had previously been accepted by HMRC as qualifying for reliefs before that date (having ‘asserted their status’). In that case, a transitional period applies up to April 2024 before access to UK tax relief is removed.
HMRC has updated VAT Notice 701/1 to reflect the restriction on UK charitable status introduced by F(No. 2)A 2023 s 344.
Although the revised notice has removed the Isle of Man, EU, Iceland, Liechtenstein and Norway from section 2.1 which sets out the basic eligibility requirements for organisations which intend to claim charity VAT reliefs (therefore restricting reliefs to charities which are based in the UK), it does not appear to cover the situation where an existing non-UK charity had previously asserted its status for the purpose of UK tax reliefs.
From 15 March 2023 (the date of Spring Budget 2023), EU and EEA charities are no longer eligible to claim UK tax reliefs unless they had previously been accepted by HMRC as qualifying for reliefs before that date (having ‘asserted their status’). In that case, a transitional period applies up to April 2024 before access to UK tax relief is removed.
