The Chancellor announced in the Spring Budget on 15 March that, with immediate effect, EU and EEA charities will no longer be eligible to be recognised as a charity for UK tax purposes. EU/EEA charities already recognised by HMRC have been given a one year transition period until April 2024.
What does this mean for EU/EEA charities? Direct donations from your UK supporters will no longer be eligible for UK tax reliefs such as Gift Aid, income tax relief on share gifts and Inheritance Tax exemption. But don't panic! By partnering with a UK donor advised fund such as Stewardship, you can still receive support boosted by UK tax relief.
What does this mean for advisers? If your client has made a will leaving a charitable legacy to an EU/EEA charity in the expectation that this would qualify for UK Inheritance Tax exemption, the will needs to be reviewed. Your client could instead leave a tax-exempt legacy to a UK donor advised fund such as Stewardship, together with a letter of wishes asking the UK DAF to support the EU/EEA charity. We work with our friends at TrustBridge Global Foundation to facilitate these cross-border gifts.
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Quarterly emails for trustees, treasurers and Church and Charity Leaders. Practical tools, technical resources and expert guidance to safeguard your mission and ministry.
Rachel Steeden
Rachel is a solicitor with 17 years’ experience advising private clients and charities. She enjoys working closely with clients and their advisers to help donors make complex gifts effectively and tax-efficiently.
She is a member of the Charity Law Association, STEP Special Interest Group for Philanthropy, Lawyers in Charities and Lawyers’ Christian Fellowship. She is also on CityWealth's prestigious Top 10 Philanthropy Advisors 2024 list.
Rachel and her husband Derek lead a Bible study group at their church in central London.
They’re passionate about Church Planting in the UK and overseas, Bible translation and The Local Church.
