The Government is set to extend the Gift Aid relief scheme after the Small Charitable Donations Bill passed its third reading in the House of Commons.
Implemented from 6 April 2013, the Bill will legislate the Gift Aid Small Donations Scheme (GASDS) which was announced in the March 2011 Budget.
The scheme will enable eligible charities and Community Amateur Sports Clubs (CASC) to claim Gift Aid style top-up payments on small cash donations without requiring the donor to provide a Gift Aid declaration.
Some amendments have been made by the Government to the Bill since its introduction, including:
- Changing the qualifying period from three years to two years that an organisation had to demonstrate a track record of compliance under Gift Aid before being able to make claims under the new scheme.
- Reduction in the matching ratio from 2:1 to 10:1, which will enable groups eligible for the scheme to claim £10 of top-up income under GASDS for every £1 donation claimed under Gift Aid.
A revised Impact Assessment has also now been published, which takes into account modifications to the Bill.
Further details from the scheme are available from HMRC.