HMRC Soften Their Stance For Charities

HMRC has issued a policy brief outlining the VAT implications for charity fundraising events following Yorkshire Agricultural Society’s success at the Upper Tier earlier this year,

Charities and other qualifying bodies may exempt supplies of goods and services made in connection with events held primarily to raise funds for their charitable purposes. HMRC clarify that “Not all fundraising events will qualify for exemption as this could give charities and other qualifying bodies an unfair advantage over commercial providers.”

The Tribunal clarified that the phrase “an event whose primary purpose is the raising of money” does not require fundraising to be the sole primary purpose. Instead, it accepted that the exemption will still apply where an event has more than one primary purpose – so long as fundraising is one of them.

This interpretation broadens the scope of the VAT relief, allowing greater flexibility for charities and qualifying bodies when planning events that serve multiple significant objectives, provided fundraising remains a central aim.