Policy paper

Removing VAT on donations of eligible goods from businesses to charities

This tax information and impact note is about a new relief for eligible goods donated by businesses to charities.

• From: HM Revenue & Customs
• Published: 26 November 2025

Documents

VAT relief for business donations on goods to charities

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Details

This measure introduces a new VAT relief for businesses that donate goods to charities.

The relief removes the requirement for businesses to account for VAT on eligible goods that are donated for onward donation or for use in the charity’s non-business charitable activities.

Published 26 November 2025