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Gift Aid Small Donations Scheme consultation

The Gift Aid Small Donations Scheme (GASDS) allows qualifying charities and Community Amateur Sports Clubs (CASCs) to claim a top-up equivalent to Gift Aid on small donations of money made without a Gift Aid declaration. A small donation is defined as a donation of £20 or less in cash. Donations made by cheque, credit card, text or bank transfer do not count.

HMRC has published a new consultation on proposed changes to help simplify the scheme and ensure as many charities as possible are able to benefit. The consultation which will run until 1 July 2016 is looking at relaxing the eligibility rules for charities to use the scheme. These proposals include removing the current requirement that a charity must have been registered for at least two full tax years before they access the GASDS. The proposals also look at amending the 'two-in-four rule' rule under which charities must have made successful Gift Aid claims in at least two out of the four previous tax years with no more than two year’s gap between them. There are also proposals to expand the GASDS to include donations received via contactless credit and debit cards and relaxing the community buildings rules.

The maximum annual donation that can be claimed through the GASDS increased to £8,000 (from £5,000) in April 2016. This limit allows charities and CASCs to claim Gift Aid style top-up payments of up to £2,000 a year. Currently, a GASDS claim can’t be more than 10 times a Gift Aid claim, e.g. a charity can claim on £1,000 worth of donations through GASDS if they have received £100 of Gift Aid donations in the same tax year.


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