At a speech to members of the Charity Tax Group, the Minister re-emphasised the government’s commitment to the sector, highlighting the work that the government has done to support charities in the last five years, and outlining four key areas to take forward.
During the previous parliament, the government reduced the rate of inheritance tax for those who donate 10% of their estate to charity. It has also introduced the Employment Allowance, which can give up to £2,000 of relief on National Insurance Contributions bills to around 35,000 eligible charities. The Minister outlined four areas that the government would like to work with the sector to take forward, as follows:
- continuing work on giving intermediaries a greater role in how Gift Aid is administered, to find ways to make claiming Gift Aid easier
- reviewing the rules on donor benefits that currently allow charities to thank donors by providing hospitality and gifts – committing to launch a call for evidence with the aim of making the rules simpler and more effective
- continuing to refine and improve the Gift Aid Small Donations Scheme, which allows charities to get a Gift Aid style top-up payment in situations where it would be difficult to get a Gift Aid declaration from a donor
- finalising a new, simpler model Gift Aid Declaration and guidance to make it easier for donors to understand – pledging to announce specific changes to this very soon
Exchequer Secretary to the Treasury, Damian Hinds, said:
Charities are a vital part of our society and the government continues to support them and their donors, including through tax reliefs to the value of over £5 billion last year.
During the last five years, the government has introduced significant new measures to support charities. Today I pledge to work side by side with the sector to continue this work to make the tax system for charities as fair and effective as possible and help money go to good causes.