Charities Bill - Round-up of Recent Developments

Originally published April 2004

There is still no date for publication of the eagerly awaited Charities Bill.

The following is a round up of recent developments of interest to the charity/not-for-profit sector.

Gifts of tax repayments

From 6 April 2004 a tax payer can nominate a charity to receive repayments due under his tax return. Only one charity can be chosen to receive the donation and the choice must be made from the Inland Revenue list published on its website. Charities should therefore consider putting themselves forward for inclusion on the list.

The repayments are made under the gift aid scheme with payments being increased in the charity’s hands by an amount equal to the basic rate of tax. A higher rate tax payer is entitled to receive the difference between the basic rate and the higher rate by entering the donation on his self assessment tax return.