HMRC have published their response to feedback received during their consultation earlier this year on reforms to the Gift Aid Small Donations Scheme (GASDS).

  • GASDS enables eligible charities to claim a Gift Aid style top-up payment on up to £8,000 of small cash donations per year. 
  • In addition, eligible charities can claim top-up donations of £8,000 on small donations collected during activities carried on in a community building such as a church or village hall. 
Currently, in order to access the GASDS scheme, charities must have:
  • Been registered for at least two full tax years (the two year rule).
  • Made Gift Aid claims in at least two of the previous four tax years (the two in four year rule).

In their earlier consultation the government proposed to simplify the GASDS rules to ensure as many charities as possible could claim.

In response to the feedback received in that consultation the government will:

  • Remove the two year rule and the Gift Aid history requirement enirely.
  • Include contactless payments within GASDS.
  • Proceed with proposals to require charities to claim either under the main allowance or the community buildings allowance, but not both.
  • Amend the community building rules to allow donations received outside the community building, but in the same local authority area to qualify.
  • Set out record keeping requirements in HMRC guidance to ensure that the relaxation of the community building rules is not abused.
  • Make no change to the current small donations limit of £20.


Our guide: Small Charitable Donations repayment scheme

The response document can be found here