The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT treatment of fund-raising events and, in particular, the exemption for fund-raising events that applies to certain charities and ‘qualifying bodies’. This note should be read in conjunction with the Charities ― overview and Charities ― recovering VAT and VAT reliefs guidance notes.
Key HMRC guidance on fund-raising can be found in Notice VCHAR9000 and Notice 701/1 . Further fund-raising guidance is also available on the GOV.UK website .
The VAT legislation limits the exemption for fund-raising events to supplies made by charities and ‘qualifying bodies’.
For the meaning of charity in the context of this exemption, see the Charities ― overview guidance note.
For the purposes of the fund-raising exemption, relief also extends to a charity’s trading subsidiary provided:
VATA 1994, Sch 9, Group 13, Note 2
Therefore, normally, if a charity’s trading subsidiary can retain its profits then it will not be able to exempt any fund raising activities that it holds. However, HMRC has stated that it will accept that exemption may apply, where:
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