Draft regulations under the Small Charitable Donations Bill have been published today for consultation.

The draft regulations set out the general legal framework for the Gift Aid Small Donations Scheme, which is due to be introduced from 6 April 2013.

The Small Donations Bill, scheduled to be implemented in England next year, will introduce a gift aid-like match-fund available for small donations (those of £20 or less) on an annual basis. The scheme differs from gift aid in that it is not a tax relief measure, and is governed by a different set of rules.

Up to £1,250 will be available for the first £5,000 of charities' small donations per annum, and HMRC estimates that the programme will unlock around £100m of funding annually for charities by 2015-16.

The Small Charitable Donations Bill has recently has its second reading in the Commons. During the debate, ministers from both sides of the party divide called for the Treasury to take on board concerns of the charity sector and simplify measures in the Small Donations Gift Aid Scheme bill or face the prospect of it creating excessive bureaucracy.

The HMRC consultation closes on 5 December.