What tax concessions do charity shops get?
Charity shops benefit from tax concessions under UK tax law because all the profits from a charity shop go to fund the work of the charity, which provides public benefit. Charity shops, therefore, serve a “charitable purpose”. Charity shops benefit from exemption from corporation tax on profits, a zero VAT rating on the sale of donated goods and 80% mandatory non-domestic rate relief. This 80% relief is funded by central Government. A further 20% rate relief is available at the discretion of local authorities.
