Market leading insight for tax experts
View online issue

OTS response to simplifying gift aid small donations scheme

printer Mail

The Office of Tax Simplification has responded to HMRC’s consultation on simplifying the gift aid small donations scheme (GASDS). The OTS recommendations include:

* relaxing the ‘two in four’ eligibility rule, requiring the charity to have made a successful gift aid claim in at least two out of the previous four tax years, as it should be sufficient for a charity to be able to show one year’s compliance history;

* replacing the rule limiting a GASDS claim to ten times a charity’s main gift aid claim with the requirement only for the charity to have made a successful gift aid claim, subject to a simple de minimis of £100;

* allowing spontaneous forms of giving, such as text messaging and contactless debit and credit cards;

* recasting the connected charities rule to allow any charity, whether connected to others or not, which operates one or more community buildings an aggregate allowance equivalent to £8,000 per building, whilst removing the restriction on funds received outside the building; and

* providing an online form to show the amount of claims made by the charity to date when they make a second or subsequent in-year claim. See

Issue: 1317
Categories: News , Tax policy