Crowe UK outlines five key VAT and tax risks and opportunities for hospice charities, covering corporation tax on non‑primary purpose trading, Gift Aid compliance, fundraising event exemptions, building project VAT relief, and upcoming investment rules effective April 2026. The article highlights practical compliance steps and recent court rulings that may affect hospice operations.
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Greater Birmingham Chambers of Commerce · 5 days ago
The UK Chancellor announced temporary VAT cuts from 20% to 5% on family attractions during school holidays, effective from the end of June to 1 September 2026. Additional measures include free bus journeys for under‑16s in England in August, a 12‑month HGV road tax holiday, and a one‑third reduction in red diesel duty until the end of 2026. Business leaders argue the cuts are insufficient to support hospitality and other sectors.
Museums Association · 6 days ago
The UK government has introduced a temporary 5% VAT rate on admission to certain family attractions, effective from 25 June to 1 September 2026, replacing the standard 20% rate. The cut covers museums, planetariums, heritage sites, nature reserves, botanical gardens, children’s meals and performance‑venue tickets marketed for children, but excludes seasonal passes beyond 1 September unless priced similarly to day tickets. Charities already exempt from VAT do not benefit unless they operate through a VAT‑registered trading subsidiary.
VatCalc · 6 days ago
UK announced a temporary emergency VAT reduction from 20% to 5% on children’s meals and family attraction tickets for the 2026 summer holidays. The relief applies from 25 June to 1 September 2026 and covers specific categories such as dedicated children’s meals, family admission tickets, and attractions like theme parks and museums. Businesses may adjust VAT retrospectively and refund excess charges.
UK Government · 7 days ago
The UK will apply a temporary 5% VAT rate to children's meals, admission tickets to theatres, cinemas, concerts, exhibitions, shows, and family attractions from 25 June 2026 to 1 September 2026 inclusive. The reduced rate ends on 1 September 2026, after which the standard rate resumes.
UK Government · 16 days ago
This UK government brief outlines HMRC’s position on the VAT treatment of electricity supplied at public electric vehicle charge points, following a First‑tier Tribunal decision involving Charge My Street Limited. It clarifies how such supplies are treated for VAT purposes and provides guidance for suppliers and users.
Accountancy Age · 20 days ago
The article outlines a compliance roadmap for UK firms expanding globally, highlighting the need to register for VAT in each jurisdiction, including Germany's €1 threshold and the EU's ViDA initiative. It details penalties for non‑registration, the adoption of PEPPOL e‑invoicing, and the launch of the Crypto‑Asset Reporting Framework in 2026. UK firms are urged to map their nexus, maintain accurate digital audit trails, and integrate tax engines compatible with EU standards.
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Key Takeaways
From April 2026, hospices must demonstrate each investment is held solely for the charity’s benefit to qualify as an approved charitable investment; otherwise, investment income may be taxable.
If a hospice’s building project costs exceed £250,000 plus VAT (expected to rise to £600,000), the building’s use must be monitored for ten years, and any change in use requires adjusting the initial VAT reclaim.
Income from fundraising events is usually exempt from VAT and direct tax, but the exemption depends on factors such as the nature of the event and sponsorship arrangements; the Yorkshire Agricultural Society case recently tested this exemption.
Hospices must ensure Gift Aid declarations are correctly worded, valid, retained, and that digital declarations have an audit trail; retail Gift Aid scheme charges to donors are subject to VAT but allow VAT recovery on shop costs.
Primary source
Read the full article at Crowe UKThis summary was published on VATfaqs.com on 26 February 2026. It relates to VAT developments in United Kingdom. The original source is Crowe UK.
