The following Trusts and Inheritance Tax guidance note Produced by Tolley in association with Speechly Bircham LLP provides comprehensive and up to date tax information covering:
This guidance note sets out the UK tax treatment of non-UK trusts and other entities of a charitable nature, and of gifts to such entities.
For convenience, the term 'foreign charity' has been used throughout the note to mean any entity of a charitable nature which is not subject to the jurisdiction of the UK courts and cannot, therefore, qualify as a 'charity' for the purposes of the charity law of any part of the UK. The question of whether an entity of a charitable nature is subject to the jurisdiction of the English courts is discussed in the What is a charity? guidance note.
The following note is concerned only with entities that do not qualify as 'charities' under these rules, because they are not subject to the jurisdiction of the courts of any part of the UK.
As discussed below, it is necessary to distinguish between entities of a charitable nature established in other member states of the European Economic Area except Liechtenstein (for convenience referred to as 'EEA charities' in this note) and foreign charities established outside the EEA. Broadly speaking gifts to EEA charities qualify for UK tax relief, whereas gifts to non-EEA foreign charities do not.
The EEA comprises the Member States of the EU plus Iceland, Norway and Liechtenstein. At present, entities of a charitable nature established in these countries are effectively recognised as charities for UK tax purposes.
No attempt has been made here to discuss the differences between the laws applicable to foreign charities and the different meanings of 'charity' in other countries.
Historically, ‘charity’ was defined in the UK tax legislation to mean a body or trust established for charitable purposes only. The legislation did not, on the face of it, say anything about where a charity must be established to qualify as such. Nor did it expressly state which law applies to determine whether the purposes of the body or trust
**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.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the vendor in exchange for shares
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.