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CHILDREN 1ST support for Gift Aid petition
14/10/2009
CHILDREN 1ST is encouraging supporters to sign a petition on the Number 10 website about Gift Aid.
The petition was started by the Institute of Fundraising. As part of their campaign, they have presented HM Treasury with detailed proposals on reforming Gift Aid for higher rate taxpayers.
The Institute is lobbying Government to introduce modifications to the existing system which would allow higher rate taxpayers to donate the full amount of tax relief which they are eligible to reclaim back to charities.
Under the current system, most higher rate tax payers believe they can reclaim the difference between the basic and higher rates of tax for themselves, but in practice the Government keeps 40% of this sum for itself.
As even this can only be reclaimed by the minority of donors who complete a self-assessment form, very few people claim back higher rate tax relief on anything but the largest donations.
Allowing the charity to reclaim the full amount of tax paid by the donor is a straightforward way to allow a gift to be given fully tax-effectively and has the potential to inspire more people to give and so substantially increase the amount of money charities receive through the Gift Aid mechanism.
If the Institute’s proposals are accepted, a donation of £1000 would attract a full £666 in Gift Aid, and so be worth £1666 to the charity.
You can sign the petition here.
Last updated: 14/10/2009
