HMRC have revised their guidance on how to register a charity for tax, taxpayer’s obligations, and any reliefs or exemptions available. The guidance has been updated at section 3.45Claiming Gift Aid on waived refunds and loan repayments to confirm that, for individuals, only the capital part of a loan waiver can be treated as a qualifying donation for gift aid purposes. Waived interest cannot qualify as a donation because the lender has never paid a sum of money to the charity equivalent to that interest. The guidance includes several worked examples.
The guidance also confirms (at section 3.45.8) that companies which are considering impairing or releasing loans made to charities are within the existing loan relationship regime rules for corporation tax purposes and lists various items companies should consider before acting.
HMRC have revised their guidance on how to register a charity for tax, taxpayer’s obligations, and any reliefs or exemptions available. The guidance has been updated at section 3.45Claiming Gift Aid on waived refunds and loan repayments to confirm that, for individuals, only the capital part of a loan waiver can be treated as a qualifying donation for gift aid purposes. Waived interest cannot qualify as a donation because the lender has never paid a sum of money to the charity equivalent to that interest. The guidance includes several worked examples.
The guidance also confirms (at section 3.45.8) that companies which are considering impairing or releasing loans made to charities are within the existing loan relationship regime rules for corporation tax purposes and lists various items companies should consider before acting.
