In Odyssey Tendercare Ltd v HMRC (TC02215 – 14 September) a registered charity (OT) had two subsidiary companies one of which operated a hotel. OT reclaimed gift aid relief in respect of donations which had been made to its two subsidiaries. When HMRC discovered this they issued an assessment to recover the tax on the basis that the payments had been made to the subsidiary companies neither of which were charities rather than to OT. The First-tier Tribunal upheld the assessment and dismissed OT’s appeal.
Why it matters: The First-tier Tribunal upheld HMRC’s view that the charity was not entitled to claim gift aid relief in respect of donations which had been made to associated trading companies which were not themselves charities.
