Online
News - Business News - Date: September
2008
Gift Aid Transitional
Relief
Charities are entitled to claim a tax repayment in respect
of gift aid donations made by individuals. The tax repayment
was 22% until 5 April 2008 being the basic rate of tax on
payments made through gift aid. As you are no doubt
aware the basic rate of tax was reduced to 20% from the beginning
of this tax year. In order to compensate charities for this
drop in income the government has introduced Gift Aid Transitional
Relief which tops up the tax repayment due to the charity
until 5 April 2011.
Charities who have already submitted repayment claims for
2008/09 should now receive their transitional relief entitlement
as the Finance Act 2008 has recently received Royal Assent.
There is no requirement for charities to make a separate
claim for the payment.
HMRC have confirmed that from now on Gift Aid Transitional
Relief will be paid automatically in addition to the tax repayment
claimed.
Internet Link:
HMRC
guidance
For further information, please contact us on +44 113 389
6200 or email enquiries@kirknewsholme.co.uk
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