A guide for registered subscribers
From 6 April 2017
The Gift Aid Small Donations Scheme (GASDS) rules are simplified.
- The two year rule and the Gift Aid history requirement will be removed entirely.
- Contactless payments will be included.
- Charities may be able to claim more than £8,000 of small donations where they have more than one community building.
- Charities will be allowed to claim either:
- Up to £8,000 of community buildings amounts in the form of small donations made in the local authority area of the building, or
- Up to £8,000 of small donations made anywhere in the UK.
- This follows a HMRC consultation opened on 20 April 2016. HMRC published a response in August 2016
Gift Aid and Intermediaries
- Following consultation
- Donors who give via intermediaries (e.g. justgiving.com) are able to make a single declaration covering all donations via that platform rather than one per charity.
From 6 April 2018
Four Extra Statutory Concessions regarding benefits for donors gain statutory backing
- Split payment rule (if a benefit's market value can be determined, this can be net off the donation)
- The charity is required to notify the donor of the amount eligible for gift aid
- Averaging method (cost of a benefit (e.g. charity dinner) can be averaged over the donors)
- 10 year rule fo "lifetime" benefits (lifetime benefit valued over a 10 year period)
- literature is of inconsequential value (material describing or promoting the charity's work has no value as a benefit)
Scottish taxpayers will need to consider the effect of the new tax bands on their gift aid claims. Charities will still receive 25% of the net donations.
From 6 April 2019
Gift Aid Donor Benefits
- Following two consultations
- The current three bands will be reduced to two
- If the donation is less than £100, then benefits of up to 25% will be allowable
- If the donation exceeds £100, then benefits of up to £20 + 5% will be allowable
- Legislation is included in Finance Bill 2018/19
