Setting up a charity

Copyright © 2026 LexisNexis
Produced by Tolley in association with Speechly Bircham LLP
Trusts and Inheritance Tax
Guidance

Setting up a charity

Copyright © 2026 LexisNexis
Produced by Tolley in association with Speechly Bircham LLP
Trusts and Inheritance Tax
Guidance
imgtext

Introduction to setting up a charity

This guidance note is designed to set out the main practical and legal issues to consider before setting up a new charity in England and Wales. It also sets out the requirements for registering a charity.

For further detail on any of the subjects included in this note, please visit the Charity Commission website.

Factors to consider before setting up a charity

New charities are established for a number of reasons. Grant-making charities can be useful vehicles for managing charitable donations effectively and tax-efficiently. In some cases, feeding donations through a grant-making charity is the only way to obtain UK tax relief on donations that will be used to carry out charitable activities. For example, this may be the case where the intention is to transfer funding to a body established outside the European Economic Area.

A new operating charity, on the other hand, may be established to pursue a charitable objective which is not carried out by any existing charity, or where the

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 30 Mar 2026 10:33

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on charities

Popular Articles

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more Read more
Trusts and Inheritance Tax

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more Read more
Corporation Tax

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more Read more