HMRC have published a policy paper, ‘Simplification of donor benefits rules for Gift Aid’ alongside Finance Bill draft legislation and a consultation response summary in respect of the proposed changes to the donor benefit rules.

The legislation included in the Finance Bill 2019 proposes the following new restrictions to associated benefits that donors can receive without losing their Gift Aid status on their donation:

  • Where the donation is £100 or less, the maximum benefit is 25% of the donation.
  • Where more than £100, the maximum benefit is the sum of £25 + 5% of the amount of donation exceeding £100, i.e. 25% for the first £100 and 5% for the excess.

These changes will have effect for payments made on or after 6 April 2019.

The legislation was published alongside HMRC’s consultation response: ‘Simplifying the Gift Aid donor benefit rules: response to the further consultation’. This was in response to HMRC’s December 2017 consultation, ‘Simplifying the Gift Aid donor benefits rules’.

In the response summary:

  • HMRC confirm that many respondents were against a single threshold alternative, which would have carried a percentage threshold lower than 25%. It was felt by many that the 25% benefit threshold was important for smaller donors.
  • Similarly, respondents agreed with HMRC that the current three threshold approach was too onerous.
  • Respondents were largely not in favour of a low value disregard, as this would over complicate the system. This idea was dropped by HMRC.

The draft legislation and policy paper can be read in full here and the consultation response here.


Gift Aid

Further consultation: Gift aid donor benefits


Wouldn’t it be great and think how much TIME it would SAVE you if someone:

  • READ all the latest tax news, case decisions, new legislation and articles in tax and then summarised them for you?
  • Only alerted you to things that are RELEVANT to you?

How about if that someone also:

  • Updated those summaries in REAL TIME for you
  • ADDED examples, planning points, toolkits and calculators, and
  • Linked all that information together and also provided you with CPD?

Thousands of firms of accountants and advisers are already using as their primary TAX resource.

At a cost of just £1 per day, it’s a no brainer: FREE up your MIND and your TIME (and your wallet).

And...we run our Virtual Tax Partner support service, if you need assistance with a particular query or technical issue.