Charitable entities and RWT-exempt status is extended to companies

Going forward it is intended that all other corporations such as companies will get automatic RWT-exempt status.

Background

Since 1st April 2020, S 32E(1A) of the TAA 1994 has provided automatic RWT exempt status for charitable trusts registered under the Charities Act 2005. This was intended for simplification and to reduce unnecessary compliance costs for registered charities.

New Amendment

The Charities Act 2005 registers “charitable entities”, not just charitable trusts and so the amendments will align the legislation with current practice and guarantee that all organizations (such as corporations) registered under the Charities Act of 2005 automatically have RWT-exempt status during the period of time they are registered.

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