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CT relief on charitable donations to US charity

Is there CT relief on charitable donations to US charity

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The CT600 guide at https://assets.publishing.service.gov.uk/government/uploads/system/uploa... says that, when recording qualifying donations,

"You should show in your computations separate totals for qualifying charitable donations made to charities established in the UK and to organisations eligible for UK charitable tax reliefs established in the European Union (EU), Norway or Iceland."

which implies that donations to charities outside these areas do not qualify for relief. However, I cannot find anything that says relief is restricted to donations to charities within these areas.

Can anyone tell me whether charitable donations to US charities qualify for relief or not?

Replies (8)

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By Accountant A
28th Apr 2018 11:58

I would assume not (assuming no UK connection) but no idea exactly where in the legislation that would be. What the Americans regard as "charitable" may well differ from the UK so it wouldn't make sense to allow favourable treatment purely because the word "charity" is used.

https://www.gov.uk/charities-and-tax/get-recognition

Thanks (1)
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By chatman
28th Apr 2018 12:34

Thanks for your response, Accountant A. I spent ages looking through the legislation for this and couldn't work it out, but the process of formulating a reply to you forced me to re-read FA2010 Sch6 Part 1 and I (finally) understood the "jurisdiction condition" whch says that the charity has to be subject to the control of a relevant UK court or "any other court in the exercise of a corresponding jurisdiction under the law of a relevant territory" and that a relevant territory means a member state other than the UK or "a territory specified in regulations made by the Commissioners for Her Majesty's Revenue and Customs". I assume the last bit refers to the EEA but I don't know how to check (although the link you gave me provides additional assurance). I can't see it in the Corporation Tax Manual. I'll call the charities technical section on Monday and see if they can help.

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Replying to chatman:
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By chicken farmer
30th Apr 2018 11:01

Search for Statutory Instruments SI 2010/1904 and SI 2014/1807

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Replying to chicken farmer:
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By chatman
30th Apr 2018 20:20

Just what I needed. Thanks.

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Replying to chatman:
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By ms998
30th Apr 2018 15:52

Try https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45072

FA 2010 definition of charity
Under Sch 6 Para 1 FA 2010 a charity is a body of persons or trust that:

is established for ‘charitable purposes’ only (see below)
meets the jurisdiction condition (i.e. is subject to the jurisdiction of a relevant UK court or the courts of a relevant territory)
meets the registration condition (i.e. has complied with any requirement under the applicable law to be registered), and
meets the management condition (i.e. the managers are fit and proper persons).
This definition of charity allows charities of relevant territories to qualify as charities for the purposes of UK legislation (provided the conditions above are met). Relevant territories are those in EU Member States, Iceland and Norway

I think you'll fail getting relief.

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Replying to ms998:
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By chatman
30th Apr 2018 20:18

ms998 wrote:
I think you'll fail getting relief.

I agree. I've already disallowed it in the comp.

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Replying to chatman:
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By ms998
01st May 2018 10:05

I know it doesn't help now but there dual resident charities (or similar) that enable tax relief to be obtained.

eg http://www.ustaxfs.com/uk-to-us-charitable-giving-2/

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Replying to ms998:
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By chatman
01st May 2018 10:27

Thanks ms998. I am sure it will be useful in the future.

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