Introduction to Tax Relief

A number of tax exemptions and reliefs on income, gains and profits are available to community groups – usually those registered as charities. The main types of exemptions and relief are: 

• tax relief on donations available through the Gift Aid and Gift Aid Small Donation scheme where the basic rate of tax can be claimed back on donations given from UK taxpayers 

• tax relief on investment income as long as income is used for charitable purposes 

• tax relief on regular sources of income, (for example, bank/building society interest) 

• tax relief on trading profits In order to take advantage of these you must be on the Scottish Charity Register and apply to HMRC, contact details below. 

Main types:

• on donations

• on profits from trading

• on rental or investment income, for example bank interest

• on profits when you sell or ‘dispose of’ an asset, like property or shares

• when you buy property

In addition to these available to registered charities, community sports clubs may also be eligible for tax exemption.