Tax Relief on Charity Donation

[Eric Mc]

Maaes a change for me to be asking a tax question.

I have come across a client who has made a charitable donation from their business (a limited company) to a charity. Normally, such payments are allowed for tax purposes. However, the charity they donated to is a US charity. Based on the research I have done, it looks to me that this particular donation is not tax deductible.

I cannot see any clear HMRC guidance on the matter. Anybody any specialist knowledge in this area?

[anonymous-user]

Not an expert, but something I have encountered once before

AIUI the charity must be recognised as such under the jurisdiction of the UK, an EU member state, Iceland or Norway

You will, I expect, already have referred to BIM45072 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45072)

[Eric Mc]

So it looks like the US is not a "relevant territory" and therefore gifts to a USA based charity will not be allowable.

Thanks for your help.