Will the 2011 Budget help charities and their supporters?
In yesterday’s budget the Chancellor unveiled several changes to encourage more charitable giving and philanthropy. His aim being to support the voluntary sector.
The changes are:
From 2013 Charities will be able to claim Gift Aid on small donations, under £10, even if the donor has not opted into the Gift Aid Scheme. This will cover donations made in collecting tins and buckets.
Charities will be able to claim Gift Aid on up to £5,000 worth of these small donations without the need for form filling.
From 6 April 2011 the maximum amount of benefits that an individual or company can receive as a result of making a donation to charity of more than £10,000 under Gift Aid will increase from £500 to £2,500. The benefit will still have to be no more than 5% of the gift
On online system for gift aid is to be introduced.
GIFTS OF ART
A consultation is to take place in the Summer to consider the introduction of lifetime tax reduction for taxpayers who give a work of art or an historical object to the nation.
For those individuals who leave 10% or more of their estates to charity the rate of inheritance tax will be reduced by 10% from April 2012.
The government is also to look into methods to increase the take up of payroll giving, which allows individuals to give through their pay and reduce their income tax bill.
Date: 24th March, 2011
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