Spring Budget 2023: Restriction of charitable tax reliefs to UK charities

As far as we are aware, this wasn't trailed in advance of yesterday's Budget, but is a potentially significant change in charity tax.  Only those charities that come within the jurisdiction of the High Court in England, Wales or Northern Ireland, or the Court of Session in Scotland will qualify for UK charitable tax reliefs. 

Anecdotally, HMRC has always been reluctant to recognise non-UK charities as charitable for tax purposes - but now that will no longer be an option.  The government claims that this new measure will ensure that the UK taxpayer will only support UK charities and CASCs.

From 15 March 2023 any new applications for tax recognition by charities or CASCs will need to comply with the new rules.

Any non-UK charity which has gone through the arduous process of UK charitable tax recognition will need to be alive to the fact that it will from April 2024 (following a short transitional period) lose that status. There are currently around 20 EU/EEA charities claiming UK tax relief. They will need to establish a UK presence if they wish to continue to do so.


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