Details of ‘simpler and more generous’ Gift Aid donor benefit rules published

09 Jul 2018 News

The government has published details of its plan to simplify the rules around how much benefit charities can give to donors and still claim Gift Aid, which will come into effect from next April. 

HMRC and Treasury carried out a consultation in 2016, the results of which were published in 2017. The chancellor, Phillip Hammond, announced the government’s intention to simplify the rules in the Budget.

Under the current system charities are allowed to provide a donor with benefits worth 25 per cent of the first £100 they give, then £25 of benefit on donations up to £1,000, then 5 per cent of the total above that, up to a maximum of £2,500. 

From April 2019 the amount of benefit a donor can receive will be 25 per cent of the first £100, then 5 per cent of any part of the donation that exceeds £100, with a maximum total value of £2,500.

The government has now published the draft legislation for consultation and policy paper explaining its thinking. 

“The changes in this measure will introduce a simpler and a more generous two threshold benefit valuation rule for charities, making it easier to claim Gift Aid on eligible donations and so increase the overall number and value of claims,” the paper said.

It said that the impact on the Exchequer is expected to be “negligible”. 

A spokesman for the Charity Finance Group said: “Change in the right direction, however modest, is always to be welcomed.  We urge government to not stop at modest amendments but to go further to simplify the system if we are to close the gap between gift aid claimed and gift aid eligible on donations”

The Charity Finance Summit, part of Charity Finance Week, takes place on 11 October.  For more information, and to book, click here.


More on

We use cookies to ensure that we give you the best experience on our website. Read our policy here.