CG67501 - Reliefs: charities: introduction
The definition of ‘a charity’ for Capital Gains Tax purposes is in Schedule 6 to the Finance Act 2010.
A charity is any body of persons or a trust which is established for charitable purposes only.
The phrase charitable purposes covers:
the relief of poverty
the advancement of education
the advancement of religion
certain, but not all, purposes beneficial to the community.
Section 256(1) of the Taxation of Chargeable Gains Act 1992 exempts a charity from Capital Gains Tax on any gains if the gains are applicable and applied for charitable purposes.
HMRC Charities is responsible for dealing with the tax affairs of all charities and trading companies wholly owned by one or more charities. Usually trustees or other persons who want to claim charitable exemption will contact HMRC Charities direct. If a claim is received in a local office please contact HMRC Charities following the guidance in Re2102.
If HMRC staff are in any doubt as to whether or not a particular organisation is a charity you should refer to the Charities Technical Team within the Individuals Policy Directorate.
Gifts to charities
See CG66620P for guidance on the Capital Gains Tax treatment of gifts to charities.