Legislation Day - Charities Update

The Government has published draft legislation designed to impose stricter requirements on charities and donors claiming charity tax reliefs, as part of its Legislation Day output on Monday 21 July 2025.

For more information on Legislation Day and other related private client developments, read our summary note.

In line with its commitment to "close the tax gap" (being the gap between tax owed and tax paid), the Government announced at the Autumn Budget 2024 a series of small but significant tweaks to the anti-avoidance provisions in the legislation on charitable investments and donations. The Government also publicised its intention to introduce changes, via guidance, to impose stricter sanctions on charities who persistently fail to meet tax obligations.