Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that Gift Aid is not given to charities linked to illegal activity.

The Government implements safeguards to prevent payments to charities associated with illegal activity. Most charities are required to be registered with their local regulator such as the Charity Commission for England and Wales (CCEW), Office of the Scottish Charity Regulator (OSCR), and Charity Commission for Northern Ireland (CCNI). In order to claim Gift Aid, they must also be registered with HMRC. This ensures that only organisations subject to regulatory oversight, trustee accountability and enforcement powers can access tax reliefs such as Gift Aid. HMRC conducts validation and risk-based checks at registration and thereafter.

These checks involve reviewing Gift Aid claims supplied by the charity. Charities must also obtain valid Gift Aid declarations from all donors in respect of whom Gift Aid is claimed. They must maintain records linking each donation to a valid declaration, including donor identity and donation details.

HMRC monitors charities through risk assessments and sector trends to ensure funds are used appropriately and reliefs are granted only where entitled.

The government introduced legislation, enacted in Finance Act 2026, which strengthens HMRC’s ability to challenge illegal and abusive arrangements.