Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Charities

HM Revenue & Customs
, see all updates

Business and non-business: Charitable activities: Treatment of welfare services supplied below cost: Is the welfare service available to all distressed people equally?

This point is touched on in the previous paragraphs. In order to qualify as a non-business activity you will need to be satisfied that the subsidised services are available equally to all distressed persons. This means, to qualify the subsidy must:

  • be available not only to those people who cannot afford to pay the full rate but also available to those who can afford to do so
  • not be applied conditionally for example, only during spells of very cold weather or only to persons living in a certain area or a person of a certain age.