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United Kingdom
United Kingdom
Key definition
Charity definition What does Charity mean? In practice, a charity is an organisation established solely for charitable purposes to deliver public benefit, with assets held for those purposes and supervised by the courts and charity regulators. Common forms include a trust, unincorporated association or company limited by guarantee (including CIO/SCIO). Surpluses cannot be distributed to members; funds must be applied to the purposes. Political activity is permitted only as ancillary. Status determines regulatory duties and eligibility for charity tax reliefs. England and Wales: Charities Act 2011, s 1, defines a charity as an institution established for charitable purposes only and subject to High Court control;...
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UK VAT treatment of charity welfare services: scope of exemption, reduced rates and partial exemption (VATA 1994 Sch 9 Group 7; Sch 7A Group 9)
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Practice notes
Charities who meet the criteria of being a charity
Charities that satisfy the definition are primarily established to deliver what can be regarded as welfare services. This is usually the heart of what they do, yet it has long been contentious with HMRC, who will only disregard VAT on such services in narrowly defined situations. Broadly, they accept exemption where the services are supplied at a price ‘significantly below’ cost to ‘distressed’ individuals, for their relief. HMRC, somewhat prosaically, say ‘distressed’ covers someone ‘suffering pain, grief, anguish, severe poverty etc.’, but it does not extend to the unemployed unless they qualify on grounds other than being out of work. HMRC take a narrow view of when relief applies.
The problem is the lack of a statutory meaning for ‘significantly below’, although HMRC have stated the cost must be subsidised by at least 15%. As welfare services are exempt for the purposes of VAT, that wording still needs to be interpreted in the context of ‘exemption’. To begin, one must determine the cost of the service provided. Out-of-pocket expenses count towards the cost, but capital expenditure does not. Capital expenditure should therefore be left out of the calculation...
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Web page updated on 22/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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