In general, for a VAT-registered business in the UK: sales of goods and supplies of services overseas are zero-rated purchases of goods from outside

Some supply types from overseas count as a reverse charge purchase, where a UK VAT-registered customer must charge themselves VAT for the purchase and

This determines the VAT treatment, and details are set out in the VAT Directive (2006/112/EC). If the place of supply is: the UK, then

There are three corporation tax reliefs that are likely to be of interest to relevant arts charities: Theatrical productions tax relief Orchestral concerts tax

Arts organisations often seek business sponsorship, for example, to sponsor a specific theatre production or gallery exhibition; to sponsor a new building or wing;

Many arts organisations use patron, friends’ or supporter schemes to obtain financial support. Supporter schemes are often structured as different packages (e.g. “gold”, “silver”,

Under this scheme museums and galleries can claim a refund for VAT incurred in providing free rights of admission. Organisations must apply to join

Gift Aid rules do not allow Gift Aid to be claimed on donated goods, only on monetary donations, which are grossed up by 25%.

Charities are entitled to mandatory rates relief of 80% of any business rates payable but it is only available when the charity is the

As the trading company is a separate legal entity it must register for VAT if its taxable supplies exceed the VAT registration threshold. Any

Charities only retain tax relief if their income is spent on their charitable purposes and tax exemptions are not available for non-charitable expenditure. Non-charitable

The Gift Aid distribution of profits from a trading subsidiary to the parent charity can only be made from distributable profits. This means that

So that a subsidiary does not pay tax, it must shed its taxable profits by tax-effective transfer to the charity by Gift Aid. However,

Cultural fit; perhaps the most significant barrier to successful merger is lack of “cultural fit”. Many charities rely on the goodwill of their stakeholders

The merger process can usually be broken down into five steps: 1. Feasibility study; undertaken to establish whether the merger is likely to work

A merger between two organisations can provide a number of benefits by reducing overall risk, potentially taking advantages of synergies in operations, and offering

In order to document the agreement between partners, you should draw up a collaboration agreement or memorandum of understanding. The precise form of this

Before you enter any form of collaboration, it is sensible to undertake some due diligence, taking it further if you are considering a deeper