VATSC03382 - Identifying a supply: Supplies of goods for no consideration: Qualifying charitable donations: Donations to a charity
The donation must be made to a charity to qualify, as required by VAT Act 1994, Schedule 4, paragraph 5A(1).
The receiving charity should be registered with the Charity Commission, or corresponding regulator, or registered with HMRC as a charity.
Many charities operate trading subsidiaries. If the donation is made to a subsidiary, the subsidiary must also be a registered charity. Otherwise, the exception will not apply.
The donation must be freely given with the donor receiving nothing in return.