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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Procedure: categories of gift accepted as exempt in limited circumstances

Gifts to bodies in the following categories may or may not be charitable (IHTM11112), depending on the precise terms of the gift. However it has been agreed with HMRC Charities that a gift to an organisation within the following categories may be accepted as charitable provided:

  • The gift is of a reasonable amount (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • the organisation is based in the UK, EU or other specified country (IHTM11128), and
  • the gift is straightforward (IHTM11124)

You should follow the procedure at IHTM11130 and contact the taxpayer or agent s if these conditions are not satisfied or there is any doubt about whether the body falls into one of the following categories. You will also need to be sure of the identity of the beneficiary of the gift.

Category 1

  • Cathedrals (including those described as minsters or abbeys and the friends of cathedrals etc)
  • Diocesan Boards of Finance
  • Church officers (including the minister, rector, vicar, church wardens) where the gift is for the upkeep of the church.
  • Parish churches which may also be minsters or abbeys
  • Parochial Church Councils
  • Churches of recognised denominations including chapels and mission halls
  • Missionary societies
  • Moral welfare associations
  • Sunday Schools

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Category 2

  • Child welfare associations
  • Children’s homes
  • Community centres
  • Convalescent homes
  • Homes for the blind
  • Hospital homes
  • Groups for people with learning disabilities
  • Old people’s welfare committees
  • Orphanages
  • Groups for disabled people

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Category 3

(Some bodies within this category may come within the Sch 3 exemption (IHTM11221) for health service bodies (IHTM11227)

  • Area health authorities
  • Hospices
  • Hospitals (including private hospitals)
  • Hospital management committees
  • Leagues of friends of hospitals
  • Medical research funds
  • Nursing associations
  • Patient amenity funds attached to hospitals
  • Samaritan funds attached to hospitals

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Category 4

Any branch of any organisation which is governed by Royal Charter and which is itself acceptable as charitable. Noteable examples are

  • Boy Scouts
  • British Red Cross
  • Girl Guides
  • Royal British Legion (branches not clubs)
  • St John Ambulance Brigade
  • Sea Cadet Corps