Liability ― fundraising events

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note explores the liability of income from fundraising events.

For an overview of VAT liability more broadly, see the VAT liability ― overview guidance note.

For in-depth commentary on the legislation and case law in this area, see De Voil Indirect Tax Service V4.171.

Liability of fundraising ― the basics

Income derived from certain fundraising events can be treated as exempt from VAT. Exemption extends to all income connected with the qualifying event. This includes admission charges but also other connected supplies like sponsorship or goods sold or auctioned at the event.

To qualify for exemption, the event must be organised by certain kinds of person. Those affected are broadly charities and their trading subsidiaries as well as certain other non-profit organisations. In addition to being organised by the right type of person, further criteria must also be met. Notably, the event must be organised for charitable purposes, its primary purpose must be the raising of money and it must be promoted as such (albeit there has been some debate over the validity

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Class 4 national insurance contributions

Class 4 national insurance contributionsWhat is Class 4 NIC?Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2

14 Jul 2020 11:13 | Produced by Tolley Read more

Personal Tax

Payment of the remittance basis charge

Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by ‘long-term’ UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay

14 Jul 2020 12:52 | Produced by Tolley Read more

Trusts and Inheritance Tax

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more

��Ƶ