Gift Aid consultation launched

Charities are being consulted on proposed changes to Gift Aid rules that would enable charities to receive additional tax back on donations that come from text message or online. Ministers have asked for opinion and feedback on plans to make Gift Aid relief even more successful. The system gives charities the chance to reclaim tax on donations made by UK taxpayers, as long as they provide their details in a Gift Aid declaration. Economic Secretary Sajid Javid said the Government appreciates the vital work of charities in society and has delivered a number of tax benefits. It wants to ensure people continue to take advantage of Gift Aid, which was worth more than £1 billion to charities in 2012.

“I am determined to build a Gift Aid system fit for the 21st century, so that more money goes to charitable causes. Quite simply, I want to see Gift Aid claimed on as many donations as possible,” he wrote in a statement to MPs. I look forward to hearing ideas from the charitable sector so that we can look towards the future success of Gift Aid.”

The aim of the consultation is to find new methods for intermediaries to gather Gift Aid for charities, while improving how the Gift Aid declaration is worded. The Government has also invited advice on other important Gift Aid changes such as a declaration database that would see donors complete just one form for all their donations to charity.

IBB’s specialist charity lawyers have a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. Contact our charity law team here, call 01895 207809 or email charities@ibblaw.co.uk.