Consultation tracker
Gift Aid Small Donations Scheme
- Published: 27/03/12
- Deadline for responses: 25/05/12
The Chancellor announced at Budget 2011 that a new Gift Aid Small Donations Scheme (GASDS) would be introduced in 2013. The GASDS will allow most qualifying charities and CASCs to claim a top-up payment equivalent to Gift Aid on up to £5,000 of small cash donations collected in the UK each year, without needing to obtain a Gift Aid declaration from the donor. A small donation is £20 or less. It is intended that top-up payments will be available on small donations collected from 6 April 2013.
To be eligible for the Gift Aid Small Donations Scheme a charity must have been a charity for UK tax purposes, for at least three consecutive tax years; and the charity or CASC must have made a successful Gift Aid claim in at least three out of the previous seven tax years; and there must be no more than two consecutive tax years in which no Gift Aid claim was made; and the charity or CASC must not have incurred a penalty in respect of a Gift Aid claim or a GASDS claim made in the tax year in which the donations are received or in the 2 previous years.
CTG was represented at HMRC’s recent public meeting on the Scheme where it was made clear that all of these proposals are still subject to change based on the responses to the consultation. Evidence will be needed however to substantiate any concerns about potential obstacles etc.
The closing date for comments is Friday 25 May 2012. HMRC will consult on draft guidance on the GASDS later in 2012.
CTG will be submitting a response to this consultation based on feedback from members and discussions with HMRC in the Charity Tax Forum technical working group on this issue. Please send your thoughts on the overall scheme or responses to particular questions to info@charitytax.info by 24 May 2012.
To be eligible for the Gift Aid Small Donations Scheme a charity must have been a charity for UK tax purposes, for at least three consecutive tax years; and the charity or CASC must have made a successful Gift Aid claim in at least three out of the previous seven tax years; and there must be no more than two consecutive tax years in which no Gift Aid claim was made; and the charity or CASC must not have incurred a penalty in respect of a Gift Aid claim or a GASDS claim made in the tax year in which the donations are received or in the 2 previous years.
CTG was represented at HMRC’s recent public meeting on the Scheme where it was made clear that all of these proposals are still subject to change based on the responses to the consultation. Evidence will be needed however to substantiate any concerns about potential obstacles etc.
The closing date for comments is Friday 25 May 2012. HMRC will consult on draft guidance on the GASDS later in 2012.
CTG will be submitting a response to this consultation based on feedback from members and discussions with HMRC in the Charity Tax Forum technical working group on this issue. Please send your thoughts on the overall scheme or responses to particular questions to info@charitytax.info by 24 May 2012.
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