The Church of England in Norfolk and North-East Suffolk
Changes to Gift Aid from April 2008

The Basic Rate Tax Change – what is happening
Gift Aid is a mechanism by which charities can reclaim tax paid on the donation. Therefore the amount you can claim is directly linked to the basic rate of tax. As the basic rate of tax is going down, the amount that can be claimed by charities in Gift Aid is dropping from 28p to 25p on the pound.

However…
The Government has decided to provide a Transitional Relief to help charities adjust to the drop in their Gift Aid income. This means that although the amount of money that can be reclaimed by charities has fallen, the actual amount they receive will remain the same until the end of the 2010/2011-tax year.

What happens now?
Charities can claim Gift Aid from HMRC on eligible donations received on, and after 6th April 2008 at the new rate of 25p on the pound.

Transitional Relief can’t be paid until the Budget receives Royal Assent in July. After that date, HMRC will review all claims which include donations received on or after 6th April 2008 and make any additional payments.

After Royal Assent, Gift Aid claims will continue to be made at 25p but HMRC will calculate and pay the Transitional Relief at the same time as the Gift Aid claim.

Charities can inform donors that they will claim 25p (true), or receive 28p (also true) - which means that existing declarations and those printed at the new rate will be applicable.

Find out more... (External web link)

Can you help?

We appreciate that many taxpayers will not necessarily be better off following the changes in the budget, but we would ask you to review your giving to see whether you could increase your support for your local Church.

Get the most from Gift Aid:

  • Gift Aid and one-off donations
    If you are a taxpayer, remember to give your one-off gifts under Gift Aid as well as your regular giving.

  • If you are a higher rate taxpayer, make sure you claim your additional relief
    From April 2008 this will be worth £25 for every £100 you give under Gift Aid. You can reclaim this through your Self-Assessment return, or by writing a letter to your tax office.

  • If you complete a self-assessment return
    you can donate any repayment due to your parish church. All you have to do is tick the relevant boxes and enter your PCC's "SA Charity Refund" code. This can be found at www.hmrc.gov.uk/charities/charities-search.htm