VAT relief on business donations of goods to charity 

The measure

Following consultation, the new relief removes the requirement for businesses to account for VAT on eligible goods that are donated for onward distribution or use in a charity or eligible organisation’s services. 

Value limits will apply to donated items to safeguard against misuse, with higher limits available for listed goods. 

Who will be affected?

Businesses that donate goods to registered charities, and the charities themselves given the aim of the measure is to increase the volume of donations. 

When will the measure come into effect?

From 1 April 2026.