Inheritance Tax
The rate of inheritance tax which will apply to an estate that has left at least 10% of its value to charity will fall from 40% to 36%. This will apply where death occurs on or after 6 April 2012.
Record keeping for Small Donations
From April 2013 charities that receive donations of £10 or less will be able seek gift aid repayments with reduced compliance burdens. This change will only be available to charities with good compliance records and the Government will consult with charity representatives on the details of the new scheme throughout 2011.
Gift Aid Recoveries
In 2012/13 an online system will be available for charities to make recovery of the tax associated with gift aid donations. This is with the express intention to reduce administrative burdens associated with charitable giving.
Donor benefit limits
There are restrictions on the value of benefits that donors may receive as a result of making a donation to a charity when the donation is in excess of £10,000. Those restrictions will be relaxed so that the benefit received can be increased. The new limits will be subject to the existing rule that the benefit must not exceed 5% of the value of the donation.
The information in this article was correct at the date it was first published.
However it is of a generic nature and cannot constitute advice. Specific advice should be sought before any action taken.
If you would like to discuss how this applies to you, we would be delighted to talk to you. Please make contact with the author on the details shown below.
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