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Investment in NFT Charity project

Tax implications on investing in charity's NFT project

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HI

 

If an individual buys NFTs created by the charity project, is there any tax benefits available like gift aid donations? And what if he will sell that NFT in future, it may have CGT implications. I am unable to find anything on HMRC portal. Anyone who can share his experience on it please   

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By Jane Wanless
28th Apr 2022 16:37

To qualify for relief under Gift Aid, there has to be a donation of money to a charity. In the scenario that a taxpayer buys NFTs, regardless of the source of the NFTs, the charity has not received a gift of money from the taxpayer. No relief is therefore due.

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By Paul Crowley
28th Apr 2022 17:27

Agree
Buyer has bought.
Buyer did not make a donation

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By Accaols
06th May 2022 13:53

Is there any way we can make it qualify for gift aid like if these NFTs are not for resale purpose etc..

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By Hugo Fair
06th May 2022 14:52

No.
The clue is in the name of the scheme ... *gift* aid (not purchase aid) - as per earlier responses. If your 'donor' received anything, then the amount paid over constitutes consideration (not a gift).

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