Gift Aid

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.

A problem for organisations that trade through charitable subsidiaries

HMRC guidance on the gift aid small donations scheme in relation to mergers of charities or community amateur sports clubs (CASCs) does not include specific reference to time limits – but they exist for new organisations to notify the tax authority if they want to take over a claims history after a merger.

The newly created body must make its application at least 60 days before its first gift aid claim or within 90 days after the date on which the current organisation began to carry on the activities of the previous one, whichever falls earlier.

The government has unveiled proposals for payroll giving that will enable employers to encourage charitable donations more easily and allow organisations faster access to the sums.