HM Revenue and Customs (HMRC) has announced new rules that will lift the administration burden for charities claiming Gift Aid on the proceeds of donors’ goods sold by charity shops.
The new rules allow donors to make a one-off Gift Aid declaration that covers donations of up to £100, or £1,000 of future sale proceeds, in a tax year. The charity will need to write to the donor only when sale proceeds exceed the amount.
The new procedures will apply from April 2013.
Gift Aid Small Donations Scheme
The Small Charitable Donations Bill received Royal Assent on 19 December 2012.
The new legislation introduces the Gift Aid Small Donations Scheme, allowing charities to claim a Gift Aid-style payment on small cash donations up to £20 from 6 April 2013.
The consultation on the regulations for the administrative framework for the scheme closed on 5 December 2012 and HMRC will be laying the final regulations and publishing guidance to accompanying the scheme for consultation in early 2013.