HMRC decides that Roman Catholic mass donations can use gift aid 2

Finance | Vibeka Mair | 15 Aug 2011

HMRC has confirmed that Roman Catholic mass offerings are eligible for gift aid.

Until now it has been assumed that mass offerings for a particular intention could not be given with gift aid because the payment was made in return for what was considered to be a private benefit.

However, Stone King partner Robert Meakin has secured confirmation from HMRC that gift aid can be claimed on such payments on the basis that priests will say mass is for a particular intention whether or not an offering is made, and also because, as such masses are open to the public, there cannot be a private benefit in law.

This allows the church to reclaim basic rate tax on the offering and higher rate donors to reclaim the difference between the basic rate paid in respect of the gift and the higher rate of tax.

The gift aid relief applies whether the offering is used for the general purposes of the charity or for maintenance of the clergy.

Meakin said that this development could potentially generate significant revenue for the Roman Catholic Church, and other churches with similar arrangements.

Since going to press HMRC have informed civilsociety.co.uk of the following:

“The gift aid rules have not changed.

“Provided the priest will say a mass for anyone without any obligation for a payment, offering or donation to be made, then a voluntary freewill gift to the church will qualify for gift aid tax repayment.

"Where a payment is made in respect of a mass being said for an individual, that payment is a payment for services, not a freewill donation and the payment will not be eligible for gift aid."

Place a comment

Nigel Edward-Few
CEO
25 Aug 2011

And why not?

I am not a Roman Catholic but an Anglican. My tithing to the church and spontaneous gifts through collections is gift aidable so why not for Catholics also?

The question of 'intentions' is irrelevant. I recently spoke at a Catholic Mass, that had an intention attached, in my capacity as CEO of a charity that the church supports and we received the funds.

I believe that all such tithes should be gift aidable through all churches if they are for the benefit of the wider good.

What I do object to most strongly is private schools, where the benefit is only to the pupils who pay to go go there, having charitable status.

[Reply]

Peter Munro
Treasurer
Scottish Borders Social Enterprise Chamber
15 Aug 2011

Mass offerings are similar for services in the Church of England, Church of Scotland, and there are similar collections at Hindu temples too.

It'll be an enormous waste of HMRC's time and individual religious organisation's resources if each organisation has to apply for the offerings received to be eligible for gift aid.

I sincerely hope that HMRC will now make this a standard.

[Reply]

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