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 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.
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 notcarried out by any existing charity, or where the founder believes that there is another, more effective, way of carrying out that objective.
Charities usually cost money to set up and to run. Before a new charity is established, it is therefore important to ensure that such expense will notbe wasted. For example, anyone considering establishing a grant-making charity should ensure that it would notbe better to make direct donations to operating charities. Similarly, before establishing a new operating charity, research should be done into existing charities operating in the same field to ensure that the proposed new charity will notcreate inefficiencies or a duplication of effort.
Various kinds of entity can be established with charitable status. Charitable status does notgenerally derive from the form of the entity but rather from the chosen purposes of the entity, and from provisions built into the entity’s governing document that ensure that its assets can only be used for such purposes, and not
**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
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Time for paymentTwo statutory rules apply on death:•tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paidThere is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of
IntroductionUK resident individuals who are non-UK domiciled can benefit from the remittance basis of taxation. The remittance basis allows for relief from UK taxation for non-UK sources of income which are not brought in (or remitted) to the UK. A remittance is any money or other property which is,
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.