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The amount of tax relief claimed by charities grew to £3.31bn in 2014/15, from £3.07bn in 2013/14, according to latest figures from HMRC.
The total amount comprised £1.64bn in business rates relief, £1.2bn from gift aid, £300m in VAT breaks, and £170m worth of stamp duty land tax relief.
The Revenue’s numbers, which are provisional, indicate that reliefs for individuals on gifts to charities increased by £100m to £1.2bn, with rises in inheritance tax relief, higher-rate breaks on gift aid and covenants, and relief on gifts and shares.
The amount of tax relief claimed by charities grew to £3.31bn in 2014/15, from £3.07bn in 2013/14, according to latest figures from HMRC.
The total amount comprised £1.64bn in business rates relief, £1.2bn from gift aid, £300m in VAT breaks, and £170m worth of stamp duty land tax relief.
The Revenue’s numbers, which are provisional, indicate that reliefs for individuals on gifts to charities increased by £100m to £1.2bn, with rises in inheritance tax relief, higher-rate breaks on gift aid and covenants, and relief on gifts and shares.
The total in breaks for payroll giving has remained the same at £40m since 2011/12, while the value of the gift aid small donations scheme in 2014/15 was £21m, lower than the December 2014 estimate of £23m.
The chairman of the Charity Tax Group, John Hemming, said his representation body intends to work with the incoming government to increase eligible gift aid uptake, and will “encourage ministers to review some of the eligibility requirements which have prevented [gift aid] from reaching its full potential and benefitting many smaller charities”.
Hemming went on to warn that charities still face an inequality in the tax system, incurring £1.5bn a year in irrecoverable VAT: “The introduction of VAT refunds for hospices and search and rescue charities has established an important precedent on which we hope to build during the next parliament.
“We have welcomed the assurances from the major parties that there will be no increases in VAT, income tax or National Insurance, but we urge all parties to commit to preserving existing charity tax reliefs, including zero rates and reduced rates, which are vitally important to charities.”
