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.
Links
Further consultation: Gift aid donor benefits
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