Gift Aid with no real gift (Spotlight 20)
Published 20 July 2013
© Crown copyright 2013
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Gift Aid rules allow charities to claim a repayment of tax on qualifying cash donations by individuals. Donors who pay higher and additional rates of tax can claim tax relief on the difference between their higher rate of tax and the basic rate of tax.
Project 2010 is a scheme designed to exploit these rules. Spotlight 9, the previous advice on ‘Gift Aid with no real gift’ explained how avoidance schemes like Project 2010 were structured.
HM Revenue and Customs (HMRC) confirmed that they would challenge the use of this scheme and would litigate where appropriate.
HMRC is preparing to take legal action, but will first contact the remaining users of this scheme to invite them to reconsider their position and let HMRC know if they wish to withdraw their claims.