Sadly, one of my client's children was diagnosed with a rare form of cancer. Treatment was not available in the U.K and so various fundraising activities were organised in order to pay for this. This got quite a bit of coverage nationally and the donations were quite considerable. Unfortunately, the child passed away fairly quickly. This pot of donations has been sitting since then and my client is wondering if she needs to pay tax on it. I have a number of questions on this;
1) is anyone aware of any laws/legislation regarding leftover donations such as this? I didn't think my client would simply be allowed to keep the money for herself.
2) I know that any funds actually used for the medical treatment were not taxable, however, this leftover pot of money is surely taxable....can anyone confirm? FYI....no charity was set up to deal with donations.