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Charities are entitled to claim a tax
repayment in respect of gift aid donations
made by individuals. The tax repayment was
22% until 5 April 2008 being the basic
rate of tax on payments made through gift
aid. As you are no doubt aware the basic
rate of tax was reduced to 20% from the
beginning of this tax year. In order to
compensate charities for this drop in
income the government has introduced Gift
Aid Transitional Relief which tops up the
tax repayment due to the charity until 5
April 2011.
Charities who have already submitted
repayment claims for 2008/09 should now
receive their transitional relief
entitlement as the Finance Act 2008 has
recently received Royal Assent. There is
no requirement for charities to make a
separate claim for the payment.
HMRC have confirmed that from now on
Gift Aid Transitional Relief will be paid
automatically in addition to the tax
repayment claimed.
Internet link:
HMRC guidance |
