Schedule 4, paragraph 5A

In paragraph 5 “qualifying charitable donation” means (subject to sub-paragraphs (6) and (7)) a donation of an item to a charity where— the item’s value does not exceed the applicable limit, and the donation is made— for use by the charity otherwise than in the course or furtherance of a business, or for onward donation by the charity (whether or not to another charity). In sub-paragraph (1)(a) “the applicable limit” means— £200 where the item donated is any of the following— a household appliance; furniture; flooring (including carpets and rugs); a computer; a mobile phone; a tablet; £100 in any other case. For the purposes of sub-paragraph (1)(a) an item’s value is taken to be the lower of— but where the amount described in paragraph (a) is not known, the item’s value is taken to be the amount described in paragraph (b). the cost to the donor of acquiring or, as the case may be, producing the item, and such consideration in money as would be payable by the donor if the donor were, at the time of the donation, to purchase— an item identical in every respect (including age and condition) to the item concerned, or where such consideration cannot be determined on the basis described in sub-paragraph (i), an item similar to and of the same age and condition as the item concerned; Paragraph 5(2A) and (5A) (goods acquired by predecessor businesses) applies for the purposes of sub-paragraph (3). For the purposes of sub-paragraph (3) the amount of consideration in money that would be payable by the donor if they were to purchase any goods is taken to be the amount that would be so payable by the donor after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to the donor. A donation is not a qualifying charitable donation if the item donated is any of the following— a tobacco product within the meaning of the Tobacco Products Duty Act 1979; a vaping product within the meaning of Part 4 of the Finance Act 2026; an alcohol product within the meaning of Part 2 of the Finance (No.2) Act 2023, other than one belonging to a class or description on which alcohol duty is not charged under that Part of that Act. A donation is not a qualifying charitable donation if (disregarding this paragraph) it is a zero-rated supply. The Treasury may by order amend this paragraph for the purpose of varying the definition of “the applicable limit” in sub-paragraph (2).

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Source: legislation.gov.uk · retrieved 2026-07-28