Gift aid is not due

The taxpayer a freemason claimed gift aid on the element paid to the Masonic Grand Charity of his annual subscription to his lodge.

Under the structure of the freemasons in England each mason pays a subscription to the lodge of which he is a member. Each lodge pays a proportion of the subscriptions it receives to the Masonic Grand Charity.

HMRC refused the taxpayer’s claim to gift aid.

The First-tier Tribunal accepted HMRC’s argument that the purpose of the subscription was to secure membership of the particular lodge. The member had to pay the entire annual fee to retain membership. There was thus no gift element to it.

Furthermore individual masons were not committed to making any payment to the Masonic Grand Charity rather the lodges were obliged to do this.

The tribunal concluded that no part of the subscription fee...