Under new UK legislation, businesses will no longer pay VAT on goods donated to charity, effective 1 April 2026. The change removes the current requirement for VAT on free gifts to charities, while donated resale goods remain zero‑rated. The relief aims to reduce waste and administrative costs for businesses and charities alike.
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HMRC has removed VAT on eligible goods donated by VAT‑registered businesses to registered charities, effective 8 June 2026. The relief includes a monetary cap per item and prohibits charities from reclaiming VAT on donated goods. Businesses should keep detailed records of donated items.
The relief takes effect on 1 April 2026.
Businesses will no longer pay VAT on goods donated to charity, removing the current requirement for VAT on free gifts to charities.
Yes, donated resale goods remain zero‑rated under the existing rules.
Primary source
Read the full article at British Beauty CouncilThis summary was published on VATfaqs.com on 9 January 2026. It relates to VAT developments in United Kingdom. The original source is British Beauty Council.
