More charity fund-raising events than before will be exempt from income and corporation tax following a revised Extra Statutory Concession published by the Inland Revenue today.

The revised ESC C4 will exempt the profits of events run by a charity or voluntary organisation to raise funds for charity which fall within the VAT exemption for fund-raising events. The VAT exemption is being extended from 1 April 2000 to include:
up to fifteen events of the same kind at the same location in any financial year and
any number of events of the same type, where the gross weekly takings do not exceed 1,000 pounds.

The text of the revised ESC C4 is attached.


1. The revised ESC C4 is part of the Getting Britain Giving measures announced by the Chancellor, Gordon Brown, in his Pre-Budget Report of 9 November 1999 and his Budget Statement of 21 March 2000. It aligns the direct tax exemption with the new, extended VAT exemption for charity fund-raising events. As a result, exemption will in future be available for a wider range of events and charities will no longer have to operate two sets of rules and deal with two Government departments.

2. Details of the VAT exemption are contained in the VAT (Fund-raising by charities and other qualifying bodies) Order 2000 laid by HM Customs & Excise on Budget Day. Although the direct tax relief applies only to charities or voluntary organisations raising funds for charity, the VAT relief covers charities, their wholly owned trading companies, and certain other qualifying bodies specified in VAT law. Customs & Excise will be publishing a draft public notice on the exemption on their website (



Certain events arranged by voluntary organisations or charities for the purpose of raising funds for charity may fall within the definition of “trade” in Section 832 ICTA 1988, with the result that any profits will be liable to income tax or corporation tax. Tax will not be charged on such profits provided:
a. the event is of a kind which falls within the exemption from VAT under Group 12 of Schedule 9 to the VAT Act 1994 and
b. the profits are transferred to charities or otherwise applied for charitable purposes.

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