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.
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Cumbria Crack · 1 day ago
The UK government’s Great British Summer Savings initiative introduces a temporary VAT reduction from 20% to 5% on certain children’s meals and family-focused activities from 25 June to 1 September 2026. Businesses must identify qualifying supplies, review pricing, adjust bundled offers, and update booking and accounting systems to manage mixed VAT treatments and potential advance‑booking adjustments.
Bournemouth Echo · 1 day ago
HMRC has confirmed that VAT‑registered companies in Dorset can donate goods to registered charities without incurring VAT, provided the goods are used to support people in need or deliver charitable services. This removes a barrier that previously required businesses to pay VAT on donated goods. Businesses should keep accurate records of donated items, especially high‑value goods.
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Museums Association · 17 days ago
The UK government has introduced a temporary 5% VAT rate on admission to certain family attractions, effective from 25 June to 1 September 2026, replacing the standard 20% rate. The cut covers museums, planetariums, heritage sites, nature reserves, botanical gardens, children’s meals and performance‑venue tickets marketed for children, but excludes seasonal passes beyond 1 September unless priced similarly to day tickets. Charities already exempt from VAT do not benefit unless they operate through a VAT‑registered trading subsidiary.
Key Takeaways
From 8 June 2026, VAT is no longer due on eligible goods donated free of charge to registered charities.
No, charities cannot reclaim VAT on the donated goods.
Charities should keep a record of donated goods, especially expensive items, and maintain an audit trail.
Primary source
Read the full article at Scottish Financial NewsThis summary was published on VATfaqs.com on 8 June 2026. It relates to VAT developments in United Kingdom. The original source is Scottish Financial News.
