Whilst tax incentives and reliefs may not be as important as genuine, philanthropic motivation for donors to charity, statistical evidence demonstrates that they can make a real difference in terms of fundraising.
In a rapidly shrinking world, tax land-locks within sovereign states and widely differing legal regimes creating restrictions which high net worth and ultra-high net work donors are seeking to escape.
Our cross-border team remains at the forefront of a rapidly developing area of the law. Within the European Union (‘EU’), events have moved swiftly in recent years, culminating in the Persche case and the Finance Act 2010, under which the UK has sought to conform to the EC treaty by extending tax exemptions and concessions to the member states of the EU (and Norway and Iceland).
Pending resolution the Transnational Giving Europe Agreement provides a means of circumventing land-locks through intermediary bodies like the Charities Aid Foundation. Beyond the EU, possibilities exist in the form of tax treaties and dual-qualified charities.