In order to take advantage of tax reliefs, including Gift Aid, charities will need to meet the definitions of a charity in the law of England and Wales (even if they are established in Scotland or Northern Ireland) and be established for charitable purposes as set out in the Charities Act 2011. Under Schedule 6 Finance Act 2010 they must also be managed by ‘fit and proper persons’. HMRC has produced detailed guidance on the meaning and implications of this new test.

Once recognised by HMRC as a charity for tax purposes, HMRC will allocate a charity tax reference number for use on all correspondence and claims. The charity will need to nominate someone to be an authorised official and/or someone to be a nominee. This means that they can sign repayment claim forms and/or receive money on behalf of the charity.