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