HMRC publishes UK charity tax statistics

Article 25 March 2021 Experience: Charities and non-profit

Following some delay due to Covid-19, HMRC has published interesting statistics relating to charity tax in the year 2019-2020. The commentary to the data published by HMRC notes that the statistics are unlikely to have been affected by the coronavirus pandemic as it only covers the period to 5 April 2020.

Key points from the data are that tax reliefs on donations to charities increased to £5.7 billion, from £5.5bn the previous year. The amount of gift aid received by charities increased by around 4% to £1.4bn, however the number of charities claiming the relief fell by around 2%. Business rates relief continues to be the largest single source of tax relief paid directly to charities. It had risen to around £2.3bn, an increase of £40 million from the previous year. Stamp Duty Land Tax relief increased slightly to £280 million for the year.

Data regarding individual donors is only available for the tax year ending April 2019. The total number of donors declaring a donation via Self-Assessment has remained at around 1.2 million, however the value of donations continues to grow and was £3.2 billion. Over 65s were the most likely to declare a donation. The amount donated through payroll giving has remained steady at around £130 million.

The next release of statistics, for the year ended April 2021, should provide an interesting picture of giving to charities during the height of the pandemic.