Charities: Gift Aid

Department for Digital, Culture, Media and Sport written question – answered on 8th July 2020.

Alert me about debates like this

Photo of Martyn Day Martyn Day Shadow SNP Spokesperson (Public Health and Primary Care)

To ask the Secretary of State for Digital, Culture, Media and Sport, what steps he is taking with the Chancellor of the Exchequer to help increase levels of revenue contributed through Gift Aid to support the civil society sector.

Photo of John Whittingdale John Whittingdale Minister of State

The Government is committed to supporting charities through Gift Aid; Gift Aid claimed by charities was worth around £1.3billion in 2018-19. Gift Aid already results in full tax relief on the tax paid on donations, with basic rate relief being claimed by the charity and higher rate relief being claimed by the taxpayer where relevant. Increasing the rate at which Gift Aid is paid would break the link with the basic rate of Income Tax paid on qualifying donations. Additionally, less than 20% of UK charities claim Gift Aid, so any increased payments linked to this tax relief would only benefit a small proportion of charities, with most being paid to a very small number of the very largest charities.

There is ongoing work between the Government and charities to improve eligible Gift Aid take-up and ensure that Gift Aid is fit for the future, and we understand the need to raise awareness among charities and donors of the benefits of Gift Aid.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.