Gift Aid Update

In the 2007 Budget, the Chancellor announced that the government would consider proposals to increase the take up of Gift Aid donations and the consultation on the Reform of Gift Aid began. Some long-awaited changes to Gift Aid were announced in the March 2011 Budget, as reported in our Budget Summary.

The key Gift Aid changes announced:

• From April 2011, the ceiling on the value of benefits a donor can receive increased from £500 to £2,500 for donations exceeding £10,000
• From April 2013, a new scheme for charities to claim Gift Aid on small donations (£10 or less) up to a total of £5,000 each year without the need to obtain Gift Aid declaration forms
• New “intelligent” forms introduced for charities to reclaim Gift Aid with a move to online Gift Aid claims by April 2013

The draft legislation in Finance Bill 2011 (No.3) (latest version 10 May 2011) details the increase in the benefits ceiling and removal of redundant reliefs, Millennium Gift Aid and Transitional Relief which ceased for Gift Aid on 5th April 2011.

If you would like to discuss any of the Gift Aid changes highlighted here, please speak to your usual Buzzacott contact or Luke Savvas at savvasl@buzzacott.co.uk.