HM Revenue and Customs is to update its guidance on the Gift Aid Small Donations scheme in relation to mergers of charities and Community Amateur Sports Clubs (CASCs) with other charities or CASCs.
The new guidance will highlight time limits for notification of mergers, as the current guidance does not include specific reference to time limits for new charities and CASCs to notify HMRC if they want to apply for confirmation that they may take over the claims history of an old charity or CASC after merger.
Currently the new charity or CASC must make an application either at least 60 days before its first Gift Aid claim, or within 90 days after the date when the new charity of CASC began to carry on the activities of the relevant old charity or CASC, whichever falls earlier.
To ensure these time limits are clear, HMRC will be updating its guidance shortly. As some charities and CASCs may have been relying solely on guidance, HMRC has said it is prepared to accept late applications relating to mergers made on or before 30 November 2013 provided the application is received by 28 February 2014.