Whilst the Budget wasn't packed with provisions directly targeting charities, the documents accompanying the Budget included the Government's response to its previous consultation on charity tax compliance. 

The changes will take effect from April 2026 and interestingly include the power to withhold Gift Aid payments to charities who are regularly in default in complying with the charity's tax obligations, including filing tax returns, if obliged to or requested by HMRC. 

Once the failures have been corrected and systems have been put in place to ensure they are not repeated, reliefs can be reinstated. So however frustrating it might be to get a request for a tax return when you know that your charity has to pay no tax, beware - failure to file one in the future could result in the withholding of Gift Aid payments! The Government will implement an education programme to explain the changes and how to ensure compliance. 

For more information

For more information on Gift Aid or charity tax compliance, please contact me.