The aim of the Gift Aid Small Donation Scheme (GASDS) is to support the charity sector in circumstances where it is not feasible or practical to obtain a Gift Aid declaration from individual taxpayers making a cash donation, for example church plate or bucket collections. The recent HMRC consultation outlined a number of proposals for reform
which include:
- removing the requirement for charities to be registered for Gift Aid for two full years before using GASDS
- requiring charities to have made problem-free Gift Aid claims in the previous tax year (rather than in two of the previous four years)
- allowing donations by contactless debit or credit card
- minor changes to the community buildings rules.
The consultation has now closed and responses from a wide range of charities are currently being considered. We will update you on the results of the consultation and any changes to legislation.
From 6 April 2016 the maximum donation that you can claim a GASDS top-up payment on is the lower of:
- 10 times the amount of donations you have claimed Gift Aid on – known as ‘the matching rule’
- small donations of up to £8,000 (an increase on the previous limit of £5,000).