Under new UK legislation, businesses will no longer pay VAT on goods donated to charity, effective 1 April 2026. The change removes the current requirement for VAT on free gifts to charities, while donated resale goods remain zero‑rated. The relief aims to reduce waste and administrative costs for businesses and charities alike.
The relief takes effect on 1 April 2026.
Businesses will no longer pay VAT on goods donated to charity, removing the current requirement for VAT on free gifts to charities.
Yes, donated resale goods remain zero‑rated under the existing rules.
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UK Government · 5 days ago
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Bloomberg Tax · 7 days ago
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UK Government · 8 days ago
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Seeburger · 12 days ago
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TaxJournal · 12 days ago
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