Charities - tax advantages and obligations

Charitable status gives UK Charities a number of tax exemptions and reliefs on income, gains and profits. However, this does not mean that charities are automatically exempt from tax - some income may remain taxable.

Equally, if your charity spends or invests money in ways which are not wholly charitable then some of the tax exemptions available on your income may be restricted, resulting in a tax liability.

If a charity has taxable income or gains, or is issued with a tax return, its obligations to pay that tax or to complete the return are the same as for any other person.

Further information:

• The tax advantages of being a charity
• Charity tax liability
• Tax returns and charity accounts