# Budget helps with Gift Aid and legacies

- Link: https://fundraising.co.uk/2011/03/23/budget-helps-gift-aid-and-legacies/
- Published: 2011-03-23T13:53:26+00:00
- Author: Howard Lake

In today’s Budget speech the Government announced a number of significant changes
to Gift Aid and the taxation of donations to encourage philanthropy and reduce the
burden on claiming Gift Aid, especially for smaller charities.

These include:

1. The rate of inheritance tax on estates leaving more than 10% to charity will 
be reduced from 40% to 36%.

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2. The Gift Aid benefit limited will be increased from April 2011 from £500 to £
2500 to allow for more generous gifts to be given to donors in thanks for their 
donations.

3. A new online system will be put in place to allow online filing of Gift Aid claims.

4. A small donations scheme will be introduced that will allow charities to claim
Gift Aid on up to £5000 of small donations per year without the need for any information
to be collected from the donor. This will effectively create a match giving scheme
at Gift Aid levels for cash donations at events or through street or door to door
collecting for smaller charities.

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