Liability ― fundraising events

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note explores the liability of income from fundraising events.

For an overview of VAT liability more broadly, see the VAT liability ― overview guidance note.

For in-depth commentary on the legislation and case law in this area, see De Voil Indirect Tax Service V4.171.

Liability of fundraising ― the basics

Income derived from certain fundraising events can be treated as exempt from VAT. Exemption extends to all income connected with the qualifying event. This includes admission charges but also other connected supplies like sponsorship or goods sold or auctioned at the event.

To qualify for exemption, the event must be organised by certain kinds of person. Those affected are broadly charities and their trading subsidiaries as well as certain other non-profit organisations. In addition to being organised by the right type of person, further criteria must also be met. Notably, the event must be organised for charitable purposes, its primary purpose must be the raising of money and it must be promoted as such (albeit there has been some debate over the validity

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Class 4 national insurance contributions

Class 4 national insurance contributionsWhat is Class 4 NIC?Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2

14 Jul 2020 11:13 | Produced by Tolley Read more

Personal Tax

Foreign self-employment

Foreign self-employmentTrading in another jurisdiction involves many issues, only some of which involve taxation. Advice should be taken, not only in relation to tax but on the wider business implications. For an overview of the points to consider for certain jurisdictions see Tolley's Global

14 Jul 2020 11:44 | Produced by Tolley Read more

Trusts and Inheritance Tax

Holdover relief for disposals by trustees

Holdover relief for disposals by trusteesOverviewWhere a capital gain has been realised on an asset that has been disposed of and that disposal was not for full value (that is not in an arm’s length sale) then holdover relief may be available. This will happen when trustees appoint capital assets

14 Jul 2020 11:54 | Produced by Tolley Read more

��Ƶ