The following Private Client guidance note provides comprehensive and up to date legal information covering:
UPDATE: In his 2015 Budget, the Chancellor indicated changes to the CGT regime. The Budget did not indicate that these changes affect issues raised in this Practice Note. It is not anticipated that the Finance Act 2015 will include any matters that will affect the contents of this Practice Note.
In practical terms a charity has no liability for any gains that it makes but there may be a liability if those gains are not applicable to and applied only for charitable purposes.
On the other side of the coin relief against liability is also available to donors to charity. Therefore if a donor gives an asset to a charity or sells it to the charity at cost it gives rise to neither a gain nor a loss.
Donations have recently gained popularity where it is possible to apply the rules relating to Gift Aid. Capital gains tax paid can be used to cover any liability for the income tax treated as deducted from such donations.
Logically relief is not available unless a body of persons is a charity. For the purposes of most taxes in order for those persons to qualify as a charity they must satisfy the following conditions:
the organisation must be for charitable purposes
it must meet the jurisdiction criteria
it must be registered
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234