New Gift Aid rules for 2006 could hit heritage and wildlife charities
Howard Lake | 15 February 2006 | News
New gift aid rules for one-off donations could cause difficulties for some charities’ finances when they come into force in April 2006, warns charities experts accountants and business advisers, PKF.
Current tax rules allow charities to claim from the Inland Revenue an additional 28p for every pound of one-off donations for entry to visitor centres to see heritage property or wildlife.
From April 2006, visitors will have to pay 10% more than the usual entrance fee in order for the charity to be able to claim back the tax relief. Wealthy visitors will benefit as higher rate tax payers can also claim extra tax relief of 18% on the donation more than making up for the 10% extra payment. But the majority of visitors, who are likely to be basic rate taxpayers, will make no saving and they will be better off simply paying the standard entry price. Many charities could lose vital gift aid top-up income as a result.
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About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.