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Lev
Lev, Tax Advisor
Category: Tax
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Can a US 501c3 operate in the UK? Can UK donations be tax

Customer Question

Can a US 501c3 operate in the UK? Can UK donations be tax deductible?
We created a US charity 501c3 in CA. We would like to open a branch in the UK.
Thank you for your help.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Yes - the US 501c3 entity may operate abroad - there is no issues
However the status of charitable organization will not be automatically recognized in the UK

To benefit from your organization must be recognized by HM Revenue and Customs (HMRC).

To get tax relief your charity must be:
based in the UK, EU, Iceland, Liechtenstein or Norway
established for charitable purposes only
registered with the Charity Commission or another regulator, if this applies to you
run by ‘fit and proper persons’
recognized by HM Revenue and Customs (HMRC)
You will find some details here

https://www.gov.uk/charity-recognition-hmrc

Similar to the US - donations to charity from individuals are tax free in the UK. You can get tax relief - see additional information here
https://www.gov.uk/income-tax-reliefs/overview

In most situations you would simply create a whole owned subsidiary in the UK - and will apply for appropriate status for that subsidiary.
That is how your US 501c3 organization would establish its presence in the UK.

Expert:  Lev replied 1 year ago.

Here is a small article regarding charities that allow tax benefits for both - US and UK - "dual qualified charity"
http://www.lexology.com/library/detail.aspx?g=87590977-3d6c-462a-b72b-a6d763410edb