New proposals to extend Gift Aid Small Donations Scheme (GASDS)

17/05/2016

HMRC are consulting on proposals to simplify the rules for the GASDS with the aim of increasing access to the relief. Proposed changes include:

• removing the requirement that a charity must have been registered for at least two full tax years before they can access GASDS and also removing the requirement for a charity to have made at least two successful Gift Aid claims in the last 4 years before they can access GASDS. The proposal is that they need only to have made a successful Gift Aid claim in the previous tax year
• considering whether donations made under contactless credit and debit cards should be brought under GASDS;
• amending the rules to allow charities or a ‘group’ of charities to claim either the main GASDS allowance or under the community buildings allowance, but not both, so that broadly similar results are obtained for charities whether they are structured as a single charity nationally or as a ‘group’ structure made up of individual charities.

Responses to the consultation should be sent by 1 July 2016, by e-mail to charitypolicy.taxteam@hmrc.gsi.gov.uk or by post to: GASDS Consultation, Room G/45, 100 Parliament Street, London, SW1A 2BQ.

For advice on the Gift Aid Small Donations Scheme (GASDS), please contact Elizabeth Irvine.