Charities and charity giving
Monday, 28th March 2011
Following our involvement in ‘Free Wills Month’ during March 2011, we have noted in the Budget changes that relate to charities and charity giving which we want to draw your attention to.
From April 2013 a new scheme will allow charities to claim Gift Aid on up to £5,000 of small donations without the need for Gift Aid declarations.
The monetary cap on the value of making donations to charities and community amateur sports clubs is to increase from 1 April 2011 (companies) and 6 April 2011 (individuals) from £500 to £2,500. The existing cap on the benefit received by individuals and companies as a result of making donations to charities and community amateur sports clubs in excess of £10,000 is to remain at 5% of the value of the gift.
The option to have self assessment repayments donated to charity under the SA Donate scheme is to be withdrawn in respect of:
1. Tax returns for the tax year 2011/12 onwards
2. Tax returns for years up to and including 2010/11 where the repayment is made on or after 6 April 2012.
Please note also the change regarding leaving legacies to charities in your Will. A reduced rate of Inheritance Tax of 36% will apply from April 2012 to death estates, where 10% or more of the net estate is left to charity.
For more information about leaving a gift in a Will for charity, please click here.
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