HMRC have published a response and further consultation document “Simplifying the Gift Aid donor benefits rules”.

This follows the initial consultation in February which proposed four simplifications to the current rules whereby Gift Aid is restricted where a charitable donor receives a valuable benefit as a consequence of making a donation.

Those simplications were:

HMRC response

As a result of the consultation responses received:

Further consultation

There is strong support for a low value disregard, and HMRC are consulting as to what level this should be introduced at.

With regard to reforming the relevant value test, HMRC propose three options:

This consultation closed on 3 February 2017.

Links

New questions for consideration

Question 18: Would any, or all, of the three relevant value reforms above – three thresholds with an adjustment to the upper limit for the £25 threshold, two thresholds operating to a ‘sliced’, or cumulative, design, or a single threshold – represent a useful simplification of the current thresholds? If so, which one(s)? Please explain why.

Question 19: Which of these relevant value reforms do you consider would be simplest for the charity sector overall? Please explain your reasons.

Question 20: Would you consider a low value disregard a welcome simplification if the government does not move to a single threshold but instead either retains three thresholds or moves to a two threshold system? Please explain your answer.

Question 21: In your opinion, what is the minimum level at which a low value disregard would be useful to charities? Please give reasons for your answer