Gift Aid and other charity tax statistics published

HM Revenue and Customs have published the latest statistics on Gift Aid and other tax reliefs for charities and donors.
An estimated £1.27bn of Gift Aid tax relief was paid to approximately 72,000 charities in the 2016/17 tax year (a £10m increase from 2015/16), while individuals claimed an estimated £520m of higher rate tax relief on their Gift Aid donations.
Tax relief payments to charities under the Gift Aid Small Donations Scheme increased by £3m to an estimated total of £29m. On the payroll giving side, an estimated £40m tax was saved by donors.
But as usual the largest tax relief for charities was Business Rates relief. An estimated total of £1.87bn was provided, a £30m increase from last year. The largest tax relief for individuals on their charitable gifts was Inheritance Tax relief (IHT), estimated at £840m.
It is surprising that tax relief under the Gift Aid Small Donations Scheme has only increased by 12% in 2016/17 despite an increase in the maximum available claim from £5,000 to £8,000 per charity or community building. It is also notable that payroll giving has remained static for the last six years despite government efforts to increase take-up.
It is good to see business rates relief continue to increase, although with rises in business rates this may be a false economy as the remaining cost to charities may still be higher after the tax relief. For individuals’ estates, as property values have increased over the last few years the IHT nil rate band has not changed, as a result, there is potentially more IHT to be saved from leaving gifts to charities.

The full publication is available here.

For further information regarding Gift Aid and other tax reliefs available to your charity and donors, please get in touch with Luke Savvas or your usual Buzzacott contact.

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