19 March 2019 - Article
Social Investment Tax Relief
As announced in the 2013 Budget, the Finance Bill 2014 will provide for 30% tax relief on investments in qualifying social enterprises. This change will take effect from 6 April 2014. The exact details of the relief will be published on 27 March but it is likely that it will unlock significant funding for charities and social enterprises.
Cultural Gifts Scheme (CGS)
CGS allows tax relief where a chattel, artwork or similar object of importance is donated to the Nation. Currently, the combined limit for the Cultural Gifts Scheme and the Inheritance Tax Acceptance in Lieu scheme is £30 million a year. This will be increased to £40 million for the year 2014-2015.
Small Charities and Gift Aid
The government hopes to encourage smaller charities to register for Gift Aid and encourage more donors to use Gift Aid where eligible, by introducing a simpler joint HMRC and Charity Commission application, targeting outreach work and researching donor behaviour.
Air Ambulance Charities
A five year grant of £65,000 each year will be introduced for air ambulance charities across the UK to reflect the VAT incurred on fuel. The government will also consult on a similar annual grant of £1 million for inland safety boat charities across the UK.
Community Amateur Sports Clubs
The government will introduce legislation to allow tax relief on gifts of cash made by companies to Community Amateur Sports Clubs.
Charity Donor Benefits
Where a donor receives benefits in return for a donation which exceed certain thresholds, the donation may not qualify for Gift Aid. The rules on calculating these benefits are complex and the government proposes to consult on how these rules can be simplified.
As announced in the Autumn Statement 2013, the government will make it easier for charities to reclaim Gift Aid through digital giving channels by allowing non-charity intermediaries (e.g. text donation operators) to reclaim the Gift Aid on their behalf. This will be introduced by regulations following the Finance Act 2015.
Stamp Duty Land Tax (SDLT)
The Government is going legislate to make it clear that partial relief from SDLT is available where a charity purchases property jointly with a non-charity. The charity will be able to claim relief from SDLT on the proportion of the purchase attributable to it. The changes will take effect from the date on which Finance Bill 2014 receives Royal Assent.
Theatre tax relief
Legislation will be introduced during the passage of Finance Bill 2014 for a new corporation tax relief for theatrical productions and touring theatrical productions. The Government will consult shortly after Budget 2014 on the design of the relief. This may be of interest to theatres who are charities.