Birketts’ Tax Team consists of specialist lawyers who work alongside our highly regarded Charities & Not for Profit Team.
The Team are fully conversant with the tax issues that might affect our charity and CASC clients. We also advise individuals and businesses on the tax reliefs arising from charitable giving and philanthropy. We help our clients make the best use of tax reliefs and efficiencies through strategic advice tailored specifically to their individual requirements.
Many charities have large endowments of land and may seek to sell part for development. This is a complex area and there are a number of tax pitfalls to avoid. We have extensive experience advising alongside our strategic land and charities team on how to best structure these projects for optimum tax efficiency. We also regularly advise charities in relation to recovering VAT, or paying VAT at a lower rate, on their own building projects, as well as advising on the availability of SDLT charities relief.
Depending on what is given to sponsors in return for their cash, the benefits may constitute trading from a tax perspective and potentially treated as a VATable supply. There are, however, exemptions for certain fundraising events, and we have experience advising on all types of sponsorship and fundraising arrangements.
Although often benefitting from exemptions from income tax, capital gains tax or corporation tax, a charity’s income is not always automatically exempt. There are complex rules regarding trading activities carried on by charities and the interaction of the exemptions. We regularly advise charities in relation to incorporating a trading subsidiary to carry on certain trading activities in a tax efficient manner.
Our lawyers are highly regarded and successfully deliver complex advice in a timely and commercial manner.
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