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VAT treatment of charity challenge events

HMRC have issued revised guidance on Charity Challenge Events, including those that qualify for the VAT Charity Fundraising Exemption.

Many charities use Charity Challenge Events, for example running, walking and cycling events, to raise funds through sponsorship of the individuals who take part.

Following representations from the charity sector HMRC have been working with them to produce revised guidance to assist charities to determine the correct VAT liability of such events.

Internet link: VAT Business Brief 36/08

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