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VAT registration for Charities

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I'm treasurer of a substantial charity and we have two properties opted to tax and do VAT returns every three months as normal.  In the modern way we are about to become a Charitable Incorporated Organisation and have Charity Commission approval.  In the back of my mind I thought that we could retain our VAT registration so I asked teh VAT helpline( an oxymoron if ever there was) and it seems that HMRC are so far behind the times they have referred it to their "complex cases" dept.  Its been three months and every time I send a reminder all I get is a generic identical response.  I have asked consultants who tell me that if the trustees of the present charity and the new CIO are the same then I dont need to de register and re register. Incidentally the helpline at the opt to tax unit said we dont need to do anything about that element.


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25th Sep 2018 11:58

If the conversion to CIO creates a separate legal entity, then the CIO should opt to tax the property and treat the transfer as a "Transfer of a Going Concern" (TOGC).

Be very careful with the timings - you would not want to be in a position where VAT has to be charged on the transfer of the properties to the CIO but is unable to be reclaimed in the CIO.

Thanks (1)
25th Sep 2018 12:04

It depends.

Has the old charity become a CIO ? If so, you need do nothing.

But if the old charity has been wound up and the business transferred to a CIO, you'll need forms VAT 7 (Deregistration), VAT 1 (Registration) and, if you wish, VAT 68 (transfer of VAT number).

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By ldcldc
to lionofludesch
10th Oct 2018 15:47

Thanks for reply. I've been away for a couple of weeks.

Yes, old trust is becoming a CIO quite seemlessly. Only change is the Charity Commissioners number and I doubt anyone will notice !
We dont have a problem with the share portfolio which is managed under discretionary power. The main change is simply that if, and I stress if, we change an investment property, it saves having to get 5 signatures from trustees who are forever on holiday.
I'll have a look at form 68 but I doubt that's even necessary

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