Category: Taxes

In HMRC v M R Currell Ltd [2026] EWCA Civ 445, the Court of Appeal held that an £800,000 payment routed through an Employee Benefit Trust (EBT) was a genuine loan, not taxable employment income, because it carried a real obligation to repay. In April 2026, the court confirmed that Mr Currell received a loan, not extra pay, so he did not gain taxable earnings from the transaction. This clarifies that simply using a trust to channel funds does not automatically turn money into a salary – the substance of the transaction matters.

Disguised remuneration (DR) rules have long targeted schemes that shift pay into loans or benefits via third parties. In 2011 the government enacted Part 7A of ITEPA 2003 to catch such schemes involving intermediaries. Later, the controversial Loan Charge (2019) aimed to tax old loan arrangements. However, under general law, a payment is only taxed as earnings if it arises “from the employment”. As HMRC’s own manuals note, a profit or payment “arose from something else” than employment if it did not truly come as a reward for services. In Currell’s case, the money was a loan – a debt Mr Currell had to pay back – not an additional salary.

Background: Disguised Remuneration & EBT Loans

Disguised Remuneration Rules (Part 7A ITEPA 2003): 

Introduced in 2011 to target third-party schemes avoiding income tax. They tax “relevant steps” (like making a loan through a trust) as if they were paid.

Loan Charge (2019): 

Further rules will tax old disguised remuneration loans. Importantly, changes after a 2025 review limit the charge to loans made on/after 9 Dec 2010.

General Tax Law: 

Under s.62 ITEPA (formerly s.19 ICTA), only payments “from the employment” are earnings. Courts ask, ‘Did the benefit come in return for work or from some other source?’

Example: HMRC’s own guidance says that a gift (e.g., a wedding present) from an employer is not taxed because it’s not “from the employment” but from a personal occasion. By analogy, a genuine loan made to an employee – especially through a trust – may not be “from” the job and thus not automatically considered earnings.

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

Facts of the Currell Case

The key points of the arrangement were that the loan was fully documented, secured by Mr Currell’s shareholding, and he clearly intended (and was able) to repay it. The First-tier Tribunal (FTT) initially treated the payment to the trust as taxable pay, essentially calling it a reward for Mr Currell’s services. On appeal, the Upper Tribunal (UT) found the opposite: the contribution to the EBT was made solely to enable the loan, and since the loan had a real repayment obligation, the payment was not considered earnings.

FTT (201X): 

Viewed the £800k contribution (the “Payment”) as remuneration for Mr Currell’s work, relying on previous cases like RFC 2012 Plc v Advocate General for Scotland (“Rangers”) that held payments to a trust could be earnings when they were agreed upon as part of salary.

UT (2024): 

Ruled that the FTT made an error. It held that the loan itself was genuine and repayable, so the contribution was not Mr Currell’s pay. The UT “remade” the decision in HMRC’s favour (legally speaking) and concluded that the £800k was not taxable as earnings because of the loan’s bona fide nature.

Court of Appeal Decision

The Court of Appeal (CA) upheld the Upper Tribunal. It firmly agreed that the loan was genuine and properly characterised. Key principles from the judgement include the following:

Characterisation Over Purpose: 

The court stressed that the character of a payment must be determined before applying tax law. Money spent on employee benefits does not automatically become “earnings” simply because of the purpose. In Currell’s case, the money went into the trust and then became a loan. The CA emphasised that one must look at what the transaction actually was, not just at why it happened.

Genuine Loan ≠ Earnings: 

A loan with a real promise to repay is not earnings. The court noted that an employee receiving a genuine loan with repayment terms is not getting a benefit worth money in the sense of pay. Instead, any fiscal “benefit” (like zero interest) is taxed under the special loan/beneficial loan charge rules, not as salary. As the CA aptly put it, “In truth, what Mr Currell got was the loan. This was not a case of diverting remuneration to the EBT.”

Read: Everything You Need to Know About Director’s Loan Write-Off and the Douglas Boulton Case

Distinguishing Rangers: 

In Rangers (the 2017 Supreme Court case), it was already common ground that the monies were remuneration; the only question was whether a trust could receive them. Here, by contrast, the very nature of the payment was in dispute. The CA highlighted a “fundamental distinction”: unlike Rangers, in Currell it was not agreed the money was due as salary in the first place. Because the loan was secured and had to be repaid, the Court found it was incorrect to equate it with Mr Currell’s pay.

Limited Circumstances for Taxing Loans: 

The Court noted that only in limited cases – for example, a sham loan or arrangement – could a loan be treated as earnings. On Currell’s facts, there was no sham. The suggestion that a borrower’s control over a lender (e.g., via share ownership) could turn the loan into pay was dismissed; no legal authority supported that idea.

Caution Against Overreach: 

In its concluding remarks, the CA warned that HMRC’s broad approach could have unintended consequences. It gave examples: if every loan through a third party were taxed as pay, ordinary loans (like directors withdrawing loan account balances or loan season-ticket schemes via payroll) might wrongly be caught. This “close inspection of the trees” could miss the bigger picture. The court thus signalled that normal commercial loans should not be swept up as disguised salaries.

In summary, the Court of Appeal agreed that the Upper Tribunal’s conclusion “was the only one that could have been reached” and expressly adopted its view that the £800k was not part of Mr Currell’s earnings.

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

Practical Implications for Businesses and Advisers

The Currell ruling offers important guidance for businesses, directors and accountants dealing with trust-based benefits.

Genuine loans must be clear: 

Any loan from a company (even via a trust) should be well-documented, with a realistic repayment schedule and security. The court noted Mr Currell’s loan was properly secured on his shares and he had independent means to repay them. Companies should “confirm loans from EBTs/trusts are properly documented, secured, and carry a realistic repayment obligation”.

Characterise the transaction: 

Focus on the substance over the formal route. If an employee receives money that they must repay, it is more logically a loan than extra salary. As HMRC’s rules (and this case) emphasise, one must decide if the benefit came “from the employment”. In practice, explain in writing that the payment is a loan for a commercial purpose (e.g., a share purchase), not a payment for work.

Trustees’ independence: 

Ensure that trustees genuinely make trust decisions, rather than merely rubber-stamping them as the company or director would. The CA pointed to the importance of true trustee control. If trustees simply do what the employer directs, HMRC may argue the trust is a sham conduit.

Use Currell in disputes: 

If HMRC challenges a loan from EBT as disguised remuneration, this case is strong authority (for pre-2011 schemes) to insist the loan is taxed as such, not as salary. Advisers should request that HMRC confirm the character of the payment (loan vs remuneration) and cite Currell’s reasoning on s.62 analysis.

Beware modern DR rules: 

Currell was a pre-2011 loan (Part 7A came into force in Oct 2011) and a pre-loan charge. After 2011, the law expanded to treat many third-party loans as income immediately. The Court acknowledged that Parliament later closed this gap. So do not assume that post-2011 or Loan Charge-era loans can avoid tax; new anti-avoidance rules will often apply. In short, Currell vindicates older arrangements, but “for post-2011 structures, Currell does not provide a free pass.”

Review legacy schemes: 

This decision is an opportunity to re-check any old EBT or loan arrangements. Where a loan was truly made and intended to be repaid (even if it was tax-advantaged), Currell suggests it was not income at the time. Conversely, any sham or purely circular schemes should be unwound or settled.

Seek expert advice: 

The line between a legitimate loan and a disguised salary can be fine. Specialist tax advice (or even HMRC clearance) is prudent for complex arrangements. The Currell judgement itself recommends getting professional opinions and structuring “defensively” under Part 7A rules.

How We Help

As chartered accountants and tax specialists, Apex Accountants can help you navigate EBT schemes and employee tax:

• Tax planning & compliance: We advise on structuring loans, share purchases or benefits so they meet legal requirements and minimise tax risk.
• Disguised remuneration & EBT advice: Our team stays up to date on cases like Currell. We can review any trust-based arrangements and ensure they pass the correct legal tests.
• HMRC dispute support: If you face an enquiry or need to appeal an HMRC decision, we can help develop your case (for example, using Currell to argue your loan was not taxable earnings).
• Loan Charge guidance: We assist clients with historic loan schemes to check if and how the Loan Charge or new rules apply.
• Tailored accounting services: From company accounts to payroll taxes and beyond, we provide practical support to UK businesses of all sizes.

With our expertise, you’ll get clear, practical advice grounded in the latest laws and court decisions. We aim to protect your interests and help you stay compliant without paying more tax than necessary.

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

Conclusion

The HMRC v M R Currell Ltd [2026] case is a reminder to look at the true nature of payments. A bona fide loan – even one routed through an EBT – should be treated as a loan for tax purposes, not as hidden earnings. This means thorough documentation and honest substance are vital. While later legislation (Part 7A, Loan Charge) has tightened the rules, Currell restores balance for older arrangements. It shows that legitimate trust arrangements with real loans won’t automatically trigger income tax just because a trust is involved. For specific situations, always seek tailored advice.

Contact Apex Accountants for expert support on employment taxes, EBT schemes and any HMRC issues. We’ll help you understand how cases like HMRC v Currell Ltd may affect your affairs and ensure you comply with tax law.

FAQs About HMRC v M R Currell Ltd [2026]

What was the main point of the Currell judgement?

The Court of Appeal confirmed that when a company’s contribution to a trust is used to fund a loan to an employee, this loan – if genuine and repayable – is not automatically taxable as earnings. In Currell’s case, the £800k he received was treated as a loan (with a real obligation to repay), not as salary.

How is this different from the Rangers’ case?

Rangers (2017) held that if an employee contracts to have part of their salary paid to a trust, it is taxable when it enters the trust. In Currell, by contrast, the court found that the parties disputed whether any salary was ever deferred; here, the arrangement was purely a loan. The Court emphasized that, unlike Rangers, it did not agree that Mr Currell had earned this money as pay.

Does this mean EBT loans are tax-free?

Not always. Currell specifically involved a loan made in 2010, before new anti-avoidance rules (Part 7A ITEPA, Loan Charge) took effect. The Court’s logic focused on that time. Today, many loans via trusts fall under strict DR legislation. However, Currell shows that if a loan was genuinely commercial and was entered into before 2011, it may not have been considered “earnings,” even if it was routed through a trust.

What should employers do now?

Companies should ensure any employee loans (direct or through trusts) are bona fide: documented, secured, and repaid. If using an EBT or similar vehicle, trustees must act independently. In case of HMRC enquiries, use the Currell case to argue that the loan should be taxed under the loan rules, not as salary, by highlighting the legal distinction. Always keep clear records of the purpose (e.g., a share purchase) to show the commercial rationale.

Will this case affect employees and tax appeals?

Yes. Individuals or employers who took loans from trusts (especially before 2011) can reference this ruling. It may overturn earlier assumptions that “trust = tax avoidance”. For appeals, lawyers and accountants will likely cite Currell when challenging HMRC assessments on genuine loans.

Many people move abroad and assume that ends their UK tax position. In practice, it often does not. The UK tax system for expats can still apply in several situations. At Apex Accountants, we regularly see expats caught by UK tax rules because they still have UK income, return to the UK too often, keep a home here, sell UK property, or come back after a short period overseas. UK tax is driven mainly by residence status and specific UK connections, not by where you feel permanently settled.

The key point is simple. You can live abroad and still be drawn into the UK tax system in several different ways. You might become a UK tax resident again under the Statutory Residence Test. You might stay non-resident but still have to pay UK tax on rental income, wages for UK workdays, or gains on UK property. You might also face extra rules if you return to the UK after a short spell overseas.

Understanding the UK Tax System for Expats

Why many people still get caught by UK tax for expats

The most common mistake is thinking there is one simple “day count” that keeps you safe. There is not. The UK uses the Statutory Residence Test, which looks at automatic overseas tests, automatic UK tests and then the sufficient ties test. Your position is tested tax year by tax year. That means someone can be non-resident one year and resident the next, even if their lifestyle feels broadly the same.

The first route: becoming UK tax resident again

For many expats, the biggest risk is drifting back into UK residence without realising it. HMRC says non-residents only pay UK tax on their UK income, while residents normally pay UK tax on all their income, whether it comes from the UK or abroad. That is why residence status matters so much.

A quick guide to the residence rules for expats

HMRC’s automatic overseas tests include two headline day limits that expats often rely on. If you were a UK resident in one or more of the previous 3 tax years, you usually need to spend fewer than 16 days in the UK to meet the first automatic overseas test. If you were not a UK resident in any of the previous 3 tax years, the second automatic overseas test usually requires fewer than 46 days in the UK. There is also a third overseas test for people working sufficient hours overseas, provided UK workdays stay below 31 and total UK days stay below 91.

On the UK side, the clearest trigger is 183 days or more in the UK in the tax year. There is also a home test. HMRC says you may become a resident if there is at least one 91-day period in which you have a UK home and spend enough time there, while spending fewer than 30 days in any overseas home.

Also Read: Could Returning to the UK Trigger a Returning Expatriates UK Tax Bill? What You Need to Know

The “ties” that catch expats out

If none of the automatic tests settle your status, HMRC applies the sufficient ties test. This is where many expats run into trouble. The number of ties needed depends on how many days you spend in the UK and whether you were a resident in any of the previous 3 tax years. For someone recently resident in the UK, even 46 to 90 UK days can be enough if they have at least 3 ties.

The main ties include the following:

• Family tie: for example, a UK resident spouse, partner or child under 18 in the UK in the relevant way.
• Accommodation tie: a place to live in the UK available for at least 91 continuous days, with enough nights spent there.
• Work tie: UK workdays can matter, especially where more than 3 hours of work are performed on enough days.

This is why casual visits can become risky. Staying with family, keeping a UK flat, doing a few work trips, or spending more time here during school holidays can shift the result.

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

The second route: staying non-resident but still paying UK tax

Many expats are surprised to learn that leaving the UK does not remove UK tax from UK income. GOV.UK is clear that you usually have to pay tax on your UK income even if you are not a UK resident. That includes things like pension income, rental income, savings interest and wages.

Common areas where tax still applies

Rental income is one of the most common traps. You need to pay tax on UK rental income if you rent out a property here. If you live abroad for 6 months or more per year. HMRC classifies you as a non-resident landlord for these purposes, even if you are still a UK resident for tax. Tax may be deducted by a letting agent or tenant unless HMRC approves gross payment through the relevant application route.

Double taxation agreements can help if the country where you live also taxes that income. GOV.UK says you may be able to claim full or partial relief, depending on the treaty. But that does not mean you can ignore the UK side. It means you need the position reviewed properly.

The third route: selling UK property while abroad

This is another major area where expats get caught. If you are not resident in the UK, you must report all sales of UK property or land even if you have no tax to pay. That applies to residential and non-residential property.

For UK residential property sold on or after 27 October 2021, the reporting and payment deadline is generally within 60 days of completion. GOV.UK warns that you should not wait until the next tax year to deal with it, because interest and penalties may apply.

This is often missed because people assume no tax means no filing. That assumption is wrong for non-residents selling UK property. Even where a loss arises, or relief means little or no tax is due, the reporting duty can still apply.

The fourth route: returning to the UK too soon

Some expats leave the UK, realise gains or receive income abroad, and then return within a few years expecting those transactions to stay outside the UK tax net. HMRC’s temporary non-residence rules are designed to stop that. HMRC states that when an individual returns to the UK after a period of temporary non-residence, they may be charged to tax on certain income and gains received during that period.

A person can be temporarily non-resident if, among other conditions, they had sole UK residence before departure, were solely UK residents in 4 or more of the 7 tax years before leaving, and their period of non-residence is 5 years or less. HMRC also states that for these special rules not to apply, the period of non-residence must exceed 5 years, in effect at least 5 years and 1 day.

For capital gains in particular, gains arising during a period of temporary non-residence can become chargeable to Capital Gains Tax in the period of return. This is a key trap for expats who sell assets while abroad and then move back sooner than planned.

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

Split-year treatment can help, but it is not optional

When someone leaves or arrives in the UK during a tax year, split-year treatment may apply. HMRC explains that a split year divides the year into a UK part and an overseas part. The UK part is taxed broadly as resident, while the overseas part is taxed broadly as non-resident for most purposes.

However, this is not something you simply choose because it suits you. If you meet the conditions for one of the split-year cases, it applies. If you do not, it does not. That makes it essential to review the facts carefully rather than relying on assumptions.

New rules on foreign income and gains

Since 6 April 2025, the old remittance basis has been replaced by the 4-year foreign income and gains regime. If you qualify and claim under this regime, you will not pay tax on eligible foreign income and gains covered by the claim. To qualify, you must be a UK tax resident under the Statutory Residence Test and still be within your first 4 years of UK tax residence after at least a 10-year period of non-UK tax residence.

This matters for expats returning to the UK after a long period abroad. The new regime may offer relief, but it has conditions and limits. GOV.UK also says unused years cannot be rolled forward. So a returning expat should review their position as soon as they become a UK resident again, not years later.

Inheritance Tax can still follow some expats after they leave

Income Tax and Capital Gains Tax are not the only issues. From 6 April 2025, GOV.UK says the old domicile and deemed domicile rules for Inheritance Tax were replaced by long-term UK residence rules. If you are a long-term UK resident, your overseas assets may be subject to Inheritance Tax.

A person is a long-term UK resident if they were a UK tax resident for either the previous 10 consecutive years or for 10 years or more in the previous 20 years. GOV.UK also says you can keep long-term UK residence for up to 10 tax years after leaving the UK, although that tail can be shorter depending on how long you lived here before departure.

That means some expats can leave the UK and still remain exposed to UK Inheritance Tax on overseas assets for years afterward. This is a major point that is often missed in international estate planning.

Key deadlines expats should not miss

GOV.UK says HMRC must receive your tax return and any money owed by the deadline. Missing these dates can trigger penalties and interest.

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

How We Can Help You

At Apex Accountants, we help expats and internationally mobile individuals understand exactly where they stand before problems build up.

Our support includes:

• reviewing your UK residence position under the Statutory Residence Test
• checking whether split-year treatment may apply
• reviewing UK rental income and non-resident landlord obligations
• handling UK property disposal reporting
• advising returning expats on temporary non-residence risks
• assessing whether the 4-year foreign income and gains regime may apply
• reviewing longer-term Inheritance Tax exposure for former UK residents

Each case turns on detailed facts. A few extra days in the UK, a family connection, a retained home, or a return to Britain sooner than expected can change the outcome.

Conclusion

Yes, expats can absolutely be dragged into the UK tax system. Sometimes that happens because they become UK residents again. Sometimes it happens because UK income and UK property remain taxable even while they live abroad. In other cases, the issue only becomes clear when they return to the UK, sell property, or begin reviewing their estate planning.

The rules are not impossible, but they are technical. The safest approach is not to assume. It is to review your residence status, income sources, property exposure and future plans early using current HMRC guidance. If you are unsure how these rules apply to you, contact Apex Accountants for professional guidance. Our specialists can review your circumstances and help you manage your UK tax position with confidence.

If by “renew tax relief on donations” you mean keeping your charity tax relief claims correct and up to date, the main UK route is still Gift Aid. There is no annual renewal process for donors. Instead, you claim relief by using the right method, keeping records, and following HMRC’s time limits. Since 6 April 2024, relief on donations to non-UK charities has ended, so eligibility now depends much more clearly on the charity meeting the UK tax definition.

At Apex Accountants, our view is simple. This area is often treated like a small admin point, but it can affect your tax return, your adjusted net income, your Higher Income Child Benefit Charge position, and, in some cases, your Inheritance Tax planning. HMRC’s own guidance shows that the rules are straightforward once you separate them into the correct relief route.

Claiming Tax Relief on Donations in UK

For most individuals, tax relief on donations is claimed through one of these routes:

What Gift Aid actually does

Gift Aid lets a charity or Community Amateur Sports Club reclaim 25p for every £1 you donate. So a £100 donation is treated as £125 gross for tax purposes. It does not cost the donor anything extra at the point of giving.

To use Gift Aid, you must give the charity a Gift Aid declaration. That declaration can cover:

• current donations
• future donations
• donations made in the last 4 years

That point matters. Many people think they need to “renew” Gift Aid every year. Usually, they do not. What matters is that the declaration remains valid and that you still pay enough qualifying UK tax.

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

Tax Rules for Donors

The tax condition many donors miss

You must have paid enough Income Tax or Capital Gains Tax in the tax year to cover the amount the charity reclaims. HMRC says your Gift Aid donations must not be more than 4 times the tax you paid in that year. If the charity reclaims more than you paid, HMRC may ask you to pay the difference.

This is one of the most important compliance points. A donor can complete a declaration in good faith, then later stop paying enough tax. HMRC says you must tell the charities you support if that happens.

Can higher-rate and additional-rate taxpayers claim more?

Yes. If you pay tax at 40% or 45%, you may claim the difference between the basic-rate relief already given to the charity and your higher rate of tax. HMRC explains that this relief is given by increasing your basic rate band and higher rate band by the grossed-up amount of your gifts.

The following example shows the mechanics clearly:

• donate £200
• charity treats it as £250 gross
• a 40% taxpayer can claim £50
• a 45% taxpayer can claim £62.50

How to claim the extra relief

If you complete a Self Assessment return, enter your qualifying charitable giving on the return using HMRC’s charitable giving guidance and helpsheet HS342. If you do not normally file a return, you can contact them and ask for your tax code to be adjusted.

If you are claiming tax relief on donations of £10,000 or more without sending a tax return, HMRC says you need to tell them the following:

• the date of the donation
• who you donated to

Can you claim for past donations?

Yes, but the route depends on timing.

1. Past donations under a Gift Aid declaration

A declaration can cover donations made in the last 4 years. That helps the charity reclaim Gift Aid on qualifying donations if the declaration is valid.

2. Carrying back a donation to the previous tax year

HMRC allows certain Gift Aid donations made after the tax year ends to be treated as if they were made in the previous tax year, but only if you make that claim on the original return and submit it by the filing deadline. HMRC is clear that it cannot accept a first claim or a higher claim in an amended return for that carry-back treatment.

3. Correcting an overpayment through HMRC

If the issue is not carry-back but overpaid tax more generally, HMRC’s overpayment relief rules may be relevant. That is a separate claims process and not a way to reopen the specific carry-back rule after the deadline.

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

What changed from April 2024?

This is the key policy change.

From April 2024, non-UK charities and CASCs are no longer eligible for UK charitable tax reliefs. GOV.UK states that only charities falling within the relevant UK court jurisdictions now qualify under the UK tax definition. HMRC also states in HS342 that you no longer get relief on gifts to non-UK charities after 5 April 2024.

So if you previously gave to an EU or EEA body and expected UK tax relief, you now need to re-check eligibility carefully. That is one of the main reasons people feel their donation relief needs to be “renewed” or revisited.

Other donation tax relief routes people often overlook

Payroll Giving

Payroll Giving works differently from Gift Aid. The donation is taken from wages or pension before Income Tax is deducted. HMRC says that to donate £1, a basic-rate taxpayer pays 80p, a higher-rate taxpayer 60p, and an additional-rate taxpayer 55p.

This donation tax relief route can be simpler for regular donors because the relief is built in through payroll. You do not then claim the same higher-rate difference separately in the way you do with Gift Aid.

Gifts of shares, land or buildings

HMRC says you can claim relief by deducting the value of the gift from your total taxable income for the tax year in which you made the gift or sale to charity. For qualifying shares and securities, HMRC also states that the relief is in addition to the Capital Gains Tax exemption on such gifts.

If the charity asks you to sell the asset on its behalf, you can still claim relief, but HMRC says you must keep the records of the gift and the charity’s request. Without them, you might have to pay Capital Gains Tax.

Gifts in your will

A gift to charity in your will is deducted from your estate before Inheritance Tax is worked out. If you leave 10% or more of the net value of the estate to charity, HMRC says the Inheritance Tax rate on some assets may reduce to 36%.

Does Gift Aid affect adjusted net income?

Yes. When working out adjusted net income, you deduct the grossed-up value of Gift Aid donations. For every £1 donated under Gift Aid, you take off £1.25 from net income.

That can matter where income-linked thresholds apply. Adjusted net income is used for rules such as the Personal Allowance taper and the High Income Child Benefit Charge.

Record-keeping rules

Good records are essential. You need to keep records of donations if you want to take them off your taxable income. For land, buildings and shares, you should keep the legal transfer papers and any document showing the charity asked you to sell on its behalf. Individual taxpayers normally need to keep records for at least 22 months from the end of the tax year.

For charities, Gift Aid declarations must be kept for 6 years after the most recent donation is claimed.

Common mistakes to avoid

• Assuming Gift Aid must be renewed every tax year
• Claiming relief for donations to a non-UK charity after 5 April 2024
• Signing a Gift Aid declaration without paying enough Income Tax or Capital Gains Tax
• Missing the filing deadline for a carry-back claim
• Forgetting that Payroll Giving and Gift Aid work differently
• Failing to keep donation evidence and supporting records

Get Free Consultation

Call Anytime 0203 883 4777

Get Free Consultation

How We Help Claim Tax Relief on Donations in UK

At Apex Accountants, we help clients review charitable giving from a tax and compliance angle, not just a paperwork angle. That includes:

• checking whether Gift Aid declarations still work for your current tax position
• reviewing higher-rate and additional-rate relief claims
• checking whether adjusted net income has been calculated correctly
• helping with Self Assessment reporting of charitable donations
• reviewing whether a current-year donation can still be carried back
• advising on gifts of shares, land or buildings
• Reviewing Inheritance Tax planning where charitable legacies are involved
• helping directors and owner-managed businesses separate personal giving from company giving rules

We also help clients avoid simple errors that can create HMRC problems later, especially where there are large donations, changing income levels, overseas charities, or missed filing deadlines.

Conclusion

The main point is this: tax relief on donations in the UK does not usually need “renewing”, but it does need checking. The right claim depends on the donation method, the tax year, the charity’s eligibility, and your own tax position. Since the April 2024 restriction to UK charities, it is even more important to confirm that a donation still qualifies before you rely on relief.

If you are unsure how your charitable donations affect your tax position, contact Apex Accountants today. Our team can review your donations, confirm eligibility under HMRC rules, and help you claim the correct tax relief on your Self Assessment return.

FAQs About Tax Relief on Donations

Do I need to renew Gift Aid every year?

No. In most cases, a valid Gift Aid declaration can cover current donations, future donations, and donations made in the last 4 years. What you must keep under review is whether you still pay enough qualifying tax.

Can I claim tax relief on donations without Self Assessment?

Yes. Higher-rate taxpayers who do not complete a return can contact HMRC and ask for a tax code adjustment instead.

Can I amend an old return to carry back a Gift Aid donation?

Not for a first or higher carry-back claim once the deadline has passed. Carry-back must be claimed in the original return for that year.

Do donations to overseas charities still qualify?

Usually no, for UK charitable tax relief purposes after 5 April 2024. GOV.UK states that non-UK charities and CASCs are no longer eligible after that point.

Can Gift Aid help if my income is over £100,000?

It can. Gift Aid donations reduce adjusted net income using the grossed-up amount. That can affect income-linked tax positions such as the Personal Allowance taper.

Is Payroll Giving the same as Gift Aid?

No. Payroll Giving gives tax relief through your pay before Income Tax is deducted. Gift Aid lets the charity reclaim basic-rate tax, and higher-rate donors may then claim extra relief separately.