Overview of changes to Charity and Community Amateur Sports Clubs Tax rules

With effect from 6 April 2026, HMRC have introduced legislative changes to charity tax rules, as well as updates to the CT600E supplementary pages (used by charities and Community Amateur Sports Clubs (CASC) to support their claim to Corporation Tax exemptions).

While the overall purpose of CT600E is unchanged, there are a few practical updates worth noting particularly for charities filing for periods starting on or after 1 April 2026.

What is a CT600E and when is it needed?

A CT600E is required to be completed when a charity or CASC is claiming exemption from Corporation Tax on all or part of its income and gains. It forms the organisation’s exemption claim, on the basis that income and gains are applied for charitable and qualifying purposes.

Charities and CASC have to complete and submit a Company Tax Return:

• If they have income that does not qualify for tax exemptions  
• If HMRC asks them to submit a return, even if they don’t have any Corporation Tax to pay

Key changes introduced/confirmed from 6 April 2026

CT600E

Asset reporting wording changed for periods starting on/after 1 April 2026

HMRC has amended the CT600E guidance for the assets section (boxes E130 to E190). For accounting periods starting on or after 1 April 2026, the disclosure changes from “assets held at the end of the period” to “assets added during the period.”

Legacy information provided and changes to attributable income

Prior to 1 April 2026, legacy income would be disclosed in the CT600E within “other sources (not included above)” (box E85). This income should now be split out and shown separately. However, HMRC have also included an additional section for the details of any legacies received during the period covered by the return to be entered. The details include the name, address, date and amount of the individual legacies. For some charities, who receive few legacies, this additional information is not too onerous, however for charities who receive a significant number of legacies, this could be a huge task. But this isn’t a mandatory requirement as the guidance notes that if “you are unable or choose not to” provide these details, then each row of the relevant section should be marked with an X, with a valid date and the total amount of legacies in those two sections.

Other changes affecting charities

From April 2026, the definition of attributable income will include legacies. As legacies may have already benefitted from IHT relief, charities and CASC’s, must, in order to avoid a tax charge, ensure that legacies are used for charitable purposes. HMRC have not imposed a timeframe for legacies to be spent.

Changes to the tainted donation rules

A donor should not receive any financial benefit from making a donation to a charity or CASC. From April 2026 the tainted donation rules will move to whether the donor receives any financial benefit, directly or indirectly, from making a donation to a charity or CASC. Previously, the test was based upon a donor’s motivation in making the donation.

Changes to approved charitable investments

There are 12 types of investment that qualify for charitable relief, these will all need to meet a single condition, that investments must be made for the benefit of the charity of CASC, and not for the purpose of enabling tax avoidance by any party. 

Gift aid and membership subscriptions

Membership subscriptions which provide access to facilities and services in return, are not considered to be gifts for Gift Aid purposes. Gift Aid can only be claimed on the basic element of the subscription that allows member rights such as voting rights and the right to attend the charity’s AGM. Therefore, any charities who receive such membership subscriptions will need to split their membership between the basic element and the element that relates to the facilities and services before a membership is subscribed to. If this split is provided retrospectively, the full membership subscription does not qualify for Gift Aid relief.

Repayments: reinforce use of Charities Online

HMRC reiterates that repayment claims (e.g., in relation to Gift Aid and certain other income) are made through Charities Online, and the CT600E contains a section relating to overclaimed tax. Charities, nominees, collection agencies and authorised agents can use Charities Online to claim repayments for Gift Aid and other income (such as bank interest), as set out in HMRC guidance.

Since 1 April 2026, HMRC’s “File your accounts and Company Tax Return” online service closed. Most entities, including Charities and CASC must now use commercial software to file Company Tax Returns and accounts with HMRC (paper filing only in limited circumstances, e.g., reasonable excuse or Welsh-language filing). 

Finally, one practical implication for charities/CASCs to note: if you previously relied on HMRC’s free online filing route, you will need to ensure your process now uses compatible software or speak to your tax advisor.

If you would like to discuss how these changes may affect your organisation, please get in touch with our charity team, who would be happy to help.