Small Charitable Donations and Childcare Payments Act

A new Small Charitable Donations and Childcare Payments Bill which is designed to help smaller charities to raise more money has received royal assent and will come into force on 6 April 2017 at the start of the 2017/18 tax year.

The Gift Aid Small Donations Scheme which was launched in 2013 allows charities to claim a Gift Aid-like relief on up to £8,000 of small cash donations per year without the need to submit paperwork for each claim.

This new act has made many changes to the scheme and the government has estimated that the reforms are likely to generate an additional £15m of Gift Aid which can be claimed by charities.

The reforms include

  • Removal of the requirement for a charity to have been registered for two years before making a GASDS claim.
  • Removal of the requirement for a charity to have made successful Gift Aid claims in two of the previous four years before making a GASDS claim.
  • Allowing small contactless payments to fall within the GASDS, but not cheque and text donations.
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