Budget 2011 announcements

This post is an extract from material posted in our Budget discussion group on 23 March:

The Chancellor has announced new measures designed to encourage people to give more to charity.

Gift Aid Benefit Limits will enable charities who wish to do so, to thank their larger donors in a more generous way without the donations being disqualified from Gift Aid.

Info/impact note: Gift Aid Benefit Limits

For donations to charities to be eligible for Gift Aid tax relief, there are limits on the value of benefits that individuals and companies may receive as a result of making those donations. Legislation will be introduced in Finance Bill 2011 to increase the benefit limit for donations of more than £10,000.

The existing rule that the benefit must not exceed 5% of the gift will remain the same, but the overriding annual limit to the value of benefits a donor may receive will be increased from £500 to £2,500.

Info/impact note: SA Donate

The government has also introduced measures for charities that receive donations made by Self Assessment (SA) taxpayers under the SA Donate scheme; and the SA donors making those donations.

The SA Donate scheme will also be withdrawn for repayments of tax due on tax returns for 2011-12 and subsequent years, and for any repayments made in respect of earlier tax years on or after 6 April 2012.

This measure supports the government’s objectives to simplify the tax system and direct resources to encourage charitable giving to more cost effective methods.

CFDG response to Budget 2011:

CFDG are delighted to see genuine reflection on the involvement of the charity sector in delivering the country’s economic recovery. In particular CFDG welcome Government listening to calls from the sector in a joint letter instigated by CFDG outlining simplification measures for Gift Aid. CEO of CFDG, Caron Bradshaw said “a number of announcements today will impact positively on charities. Given the central role of the sector in delivering growth we are pleased to have seen measures to tackle long-standing issues such as Gift Aid simplification.”

Do you agree with CFDG's assessment - was it a good Budget for your charity?