4. Charities and Gift Aid
Changes will be introduced to increase the value of benefits that gift aid donors may receive as a result of making a donation of more than £10,000 to a charity. The limit will increase from £500 to £2,500 but it is still subject to the existing 5% limit.
From April 2013, charities that receive donations of less than £10 and have been operating gift aid for at least 3 years without any problems will be able to obtain gift aid without the completion of gift aid declarations. Such claims would be capped at £5,000 per year, per charity.
The government are considering introducing a tax reduction for gifts of works of art or historical objects of national importance to the state.
In 2012/13 HMRC will introduce a new online system for charities to register their details for gift aid and to make gift aid claims.
These changes are good news for the sector. The reduction in the benefit to donors and de-minimis limit for completing gift aid donations will be particularly welcome by museums and similar establishments who rely on small donations from the public.