Gift Aid Small Donations Scheme
Published 29 October 2018
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This publication is available at https://www.gov.uk/government/publications/gift-aid-small-donations-scheme-changes/gift-aid-small-donations-scheme
Who is likely to be affected
Charities and individuals who donate to charities.
General description of the measure
Currently the Gift Aid Small Donations Scheme (GASDS) only applies to donations of £20 or less made by individuals in cash or by contactless payment. This measure will increase the limit to £30.
Policy objective
Contactless donations were included in GASDS from April 2017. The limit for contactless payments in the UK is £30 and raising the small donations limit for GASDS to £30 will be in line with this.
Background to the measure
This measure was announced at Budget 2018.
GASDS was introduced in April 2013 and reviewed in 2016. One of the changes made as a result of that review was to allow small donations under the scheme to be made by contactless payments from April 2017.
The limit on donations by contactless payment was the same as the limit on small cash donations made under this scheme.
Following stakeholder feedback the government has decided to increase the individual donations limit for GASDS to £30. A consultation is not needed to make this small change.
Detailed proposal
Operative date
The measure will have effect for small donations made under the GASDS scheme on or after the relevant secondary legislation has been approved by a resolution of the House of Commons. Parliamentary timetable permitting, the increase would become effective from 6 April 2019.
Current law
Current law is in paragraph 1 of the schedule to the Small Charitable Donations Act 2012 (meaning of small donations) as amended by the Small Charitable Donations and Childcare Payments Act 2017.
Proposed revisions
The small donations limit in paragraph 1(1) of the schedule to the Small Charitable Donations Act 2012 (meaning of small donations) will be changed from £20 to £30. The change will be made by Statutory Instrument under the powers contained in section 17 of the act.
The Statutory Instrument will be published when laid before the House of Commons.
Summary of impacts
Exchequer impact (£m)
| 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 |
|---|---|---|---|---|---|
| - | -5 | -5 | -5 | -5 | -5 |
These figures are set out in Table 2.1 of Budget 2018 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Budget 2018.
Economic impact
This measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
The measure is not expected to impact on individuals, households, family formation, stability or breakdown.
Equalities impacts
The equality implications of this measure have been considered, and it is not expected that it will have any adverse impacts on groups with protected characteristics.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on around 20,000 charities and Community Amateur Sports Clubs (CASCs).
Charities and CASCs that claim top-up payments under the GASDS scheme will be able to accept donations of up to £30 as a result of this measure.
One-off costs include familiarisation with these changes. It is not expected that there will be any ongoing costs as, other than the individual donation limit, the GASDS is not changing.
Operational impact (£m) (HMRC or other)
There will be no operational impacts for this measure.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
This measure will be monitored through information provided in correspondence and regular feedback from the charity sector.
Further advice
If you have any questions about this change, contact Hasmukh Dodia by email charitypolicy.taxteam@hmrc.gsi.gov.uk.