Possible measures to increase the take-up of Gift Aid tax relief were discussed yesterday in a meeting of charity sector representatives with The Chief Secretary to the Treasury, Stephen Timms MP, and the Minister of the Third Sector, Ed Milliband MP.
A wide range of opinions from the charity sector will be gathered from up and down the country in order to get a broad view of the potential measures to be introduced.
Gift Aid was originally launched by the Finance Act of 1990 to enable tax relief for charitable donations made by individuals, and was later expanded to include gifts from companies. It involves a brief declaration confirming that the individual is a UK tax payer and that the gift is therefore eligible for tax relief.
Stephen Timms said: “Take up of Gift Aid currently stands at around a third of donations, delivering support for charities worth £828m per year. We all want to see this improve and this consultation is the first step towards realizing that goal.”
“It is very important to get the views of the charitable sector about how we can strengthen Gift Aid and I hope that a diverse range of charities will take part.” added Ed Milliband. “CAF (Charities Aid Foundation) estimates that £700m more could be claimed though Gift Aid by charities with more tax-effective giving.”
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