Gift aid donation rules clarified

Recent reports in the national media have suggested that HMRC has sought to restrict Gift Aid on donations which are accompanied by a message of support from a donor’s family. According to a recent announcement by HMRC this is absolutely not the case. HMRC’s position as set out in their recent website posting is reproduced below:

“HMRC’s position has always been that Gift Aid can be claimed when an individual donor, who pays tax in the UK, makes a donation, even if additional names are added in a supporting message. HMRC’s advice on this issue appears to have been misinterpreted so we are going to ensure our guidance is as clear as possible.

Where gifts are made by groups of people, such as work collections or large groups of friends, Gift Aid is not due and should not be claimed.

It is a government priority to maximise Gift Aid on eligible donations, and £1.2bn of tax repayments were made to charities in the tax year 2014 to 2015 through Gift Aid.

HMRC will continue working closely with charity collection agents to help them improve their processes so that Gift Aid is not removed from eligible donations.”

Latest Blog
02
Dec

Tax Diary December 2021/January 2022

1 December 2021 – Due date for corporation tax payable for the year ended 28 Fe...

Read More
02
Dec

Budget bad news 27 October 2021

Readers should take note of the following changes: Income Tax Allowances frozen: The ...

Read More
02
Dec

Budget bonuses 27 October 2021

There was little good cheer in the Chancellor’s announcements to parliament on ...

Read More
02
Dec

Business gifts and tax

Business gifts are not allowed as a tax deduction against profits. The legislation tr...

Read More

CONTACT SIMON COOPER