Budget 2014 – Gift Aid and Cultural Gifts Scheme

Copied below are the relevant sections from the Chancellor’s 2014 Budget relating to Gift Aid and the Cultural Gifts Scheme and Acceptance In Lieu.

Making Gift Aid easier for small charities and donors to use is welcome but difficult to comment on until the detail is provided.

The combined annual limit for the Cultural Gifts Scheme and Inheritence Tax Acceptance in Lieu scheme will be increased from £30m to £40m a year from 2014/15.

Extracts from HM Treasury Budget Report 2014

Charities and Gift Aid

2.91 Gift Aid digital – As announced at Autumn Statement 2013, the government will legislate to allow non-charity intermediaries a greater role in operating Gift Aid with further detail to be set out in regulations. (Finance Bill 2015) (aa)
Budget 2014 69
2.92 Small charities – The government will encourage more donors to use Gift Aid on eligible donations and encourage smaller charities to register for the reliefs they are entitled to. This will include targeted outreach work, a simpler joint HMRC/Charity Commission application process and improving understanding of donor behaviour.
2.93 Increase Cultural Gifts Scheme limits – The combined annual limit for the Cultural Gifts Scheme and Inheritance Tax Acceptance in Lieu scheme will be increased from £30 million to £40 million a year from 2014-15. (51)
2.94 Cultural Gifts Scheme amendments to legislation – As announced at Autumn Statement 2013, the government will legislate to ensure the Cultural Gifts Scheme (CGS) works as intended in relation to Estate Duty. The amendment will ensure that donors of objects, on which there is potentially a charge to Estate Duty, are not financially better off by donating the object under the CGS, than selling the object on the open market. (Finance Bill 2014)
2.95 Grant for air ambulance and inland safety boat charities – Following HM Treasury’s review of the VAT air ambulance charities incur on fuel, the government will introduce a 5-year grant of £65,000 per year for air ambulance charities across the UK. Following a consultation, the government will also introduce a further 5-year grant of £1 million per year for inland safety boat charities across the UK.
2.96 Charity donor benefits – The government will review benefits allowed to donors with a view to simplifying existing rules.

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