Compliance
Compliance Checklist 2026: Stay Ahead with UK Charity Tax and Reporting Changes
With regulatory changes on the horizon for UK charities—rules around tainted donations, attributable income, and reporting—organisations must prepare now to ensure compliance from 6 April 2026.
By NomadicTax Research Team • 5-8 min read • March 26, 2026
## What’s changing for UK charities
- **Tainted donations**: Charities will face new rules concerning donations tainted by misconduct or reputational risk; enhanced responsibilities around acceptance and due diligence. Introduced from **April 2026**. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-140/issue-140-of-agent-update?utm_source=openai))
- **Approved charitable investments and attributable income**: Stricter definitions, reporting rules, and income attribution methods will be enforced. Additionally, intermediaries and agents tied to charitable income will be under closer scrutiny. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-140/issue-140-of-agent-update?utm_source=openai))
## Effective from 6 April 2026—what to do now
Charities, CASCs, and donors should focus on:
- Auditing existing donation processes for reputational risk—review policies around accepting gifts, especially from non-traditional sources or overseas.
- Updating investment policies: ensuring that approved charitable investments comply with new definitions and restrictions.
- Reviewing income attribution: mapping out who earns what, who benefits, how income from subsidiaries or donors is tracked. If agents or fundraisers are involved, ensure contracts clearly define “attributable income” and reporting obligations.
## Reporting and filing operations to revise
- Prepare to fill in updated forms and **CT600P page** on corporation tax returns if claiming related reliefs or expenditure credits, from 6 April 2026. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-140/issue-140-of-agent-update?utm_source=openai))
- Agents supporting charities should familiarize themselves with the new guidelines, as HMRC will require more detailed information.
- Stay aware of penalties or risks under non-compliance—particularly where reporting is incomplete or donations are poorly documented.
## Example: Charity A and Charity B
| Scenario | Risk before changes | Actions to take |
|---|---|---|
| *Charity A* receives a large donation from overseas donor with unclear source | Risk of “tainted donation”—may need to return or disclose; reputation harm | Undertake due diligence; document source; potentially refuse donation if risk too high |
| *Charity B* invests reserves via a fund with mixed holdings | May fail “approved investment” definitions—potential exposure or tax challenges | Review investment holdings; shift to HMRC-approved vehicles; document decisions |
## Best-Practices Checklist
- ✅ Revise governance policies on accepting donations, ensuring checks for money laundering or ethical concerns
- ✅ Update accounting and reporting systems to capture attributable income precisely and track payments via agents
- ✅ Train staff or trustees on new rules before April 2026
- ✅ Consult with tax advisors to review and update charitable investment strategies
## Why this matters
These changes are not simply administrative; they target the integrity of the charitable sector. Poor compliance may lead not only to financial penalties but reduced public trust and exposure to regulatory investigation. By acting now, charities protect their mission and values while navigating new regulatory terrain smoothly.