Simplification of Gift Aid Small Donations Scheme (GASDS)
A Bill has been passed aimed at making it easier for charities to claim a relief similar to Gift-Aid on small donations.
The Gift Aid Small Donations Scheme (GASDS) was first introduced in 2013. It allowed charities to claim up to £5,000 of Gift Aid on small donations, without the need for donors to fill in any forms. This annual allowance was increased to £8,000 in April 2016.
The Small Charitable Donations and Childcare Payments Act 2017 makes several amendments to the legislation that underpins GADS. This will simplify the scheme and extend it to smaller and newer charities. Changes will take effect from 6 April 2017. They include:
- charities will no longer need to be registered for two complete tax years before claiming GADS, so newly formed charities can access the scheme;
- charities will no longer need to show that they have made successful Gift Aid claims for two of the last four before they can use GASDS;
- contactless donations will be included under GASDS, but not donations by text or cheque;
- charities that are connected – such as denominations of churches or the scouts – will no longer have to share the £8,000 main allowance under the ‘community building’ rules. They will have an £8,000 allowance for each location.
The matching rule remains, which means charities will still need to claim £1 of Gift Aid for every £10 claimed under GASDS.
For more information on the Gift Aid Small Donations Scheme please contact Elizabeth Irvine.