Gift Aid: Budget 2011 measures affecting charities and community amateur sports clubs as well as individual and corporate donors.
Large donor benefit limits to increase
From 6 April 2011 the limit on the total value of benefits that individuals and companies may receive as a result of making donations to a charity (or a community amateur sports club) of more than £10,000 in a tax year will increase from £500 to £2,500.
In other cases, the rule that the value of benefits that individuals and companies may receive must not exceed 5% of the amount of the donation continues to apply.
Simplification for small gifts
From 2013 charities (and community amateur sports clubs) will be able to claim a gift aid style repayment on collections of up to £5,000 made up of small donations (amounts of £10 or less).
The qualifying conditions will be that for at least three years prior the charity will have:
- Been recognised by HMRC for gift aid purposes.
- Operated gift aid successfully.
- Have a good compliance record.
Online filing
In 2012/13 HMRC will introduce a new online filing system for charities to use in gift aid registration and claims.
In-year repayments of income tax
HMRC will enact Extra Statutory Concession to enable charities to make in-year income tax claims.
Gifts of art
A summer 2011 consultation will examine introducing a tax reduction for taxpayers who give works of art of historical or national importance to the State.
Inheritance tax
From 6 April 2012 a reduced rate of IHT will apply when 10% or more of a deceased's net estate (after deducting exemptions, reliefs and the nil rate band) is left to charity. In most cases this will ensure taht the 40% top rate is reduced to 36%.
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