Tax issues

Charities and social enterprises have specific tax issues:

Charities and corporation tax

Although generally exempt from a charge on most of their income, there are a number of corporation tax pitfalls that charities need to look out for.


There is no general VAT exemption for charities, but much of their activities and income are either exempt from VAT or outside the scope of VAT. Also, there are a number of zero-rating reliefs that apply to charities.

Non-charity social enterprises often also have income that can be exempt or outside the scope, and both charities and non-charities can therefore have to deal with partial exemption.

Gift Aid

How charities can claim tax refunds for their donations.

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