Significant fall in total amount of tax relief claimed by charities

The total amount of tax relief claimed by not-for-profit organisations has fallen by £50m, a new report has revealed.

The figures, published by HM Revenue & Customs (HMRC), show that the total amount of tax relief claimed by charities is estimated at £3.77bn.

There was a minor increase in the amount of Gift Aid claimed by charities, which rose from £1.26bn to £1.27bn in 2016/17.

This was noted after the number of charities claiming Gift Aid increased by 1,170 to a total of 71,990 charities.

The figures show that 150 charities claimed £1m or more in Gift Aid during 2016/17.

However, income tax relief on other charitable income – which includes bank and building society interest, interest from Government stocks, income from wayleaves, royalties, estate income and discretionary trust income – fell dramatically from £40m to just £10m.

Other findings include:

  • VAT relief remained at £400m a year.
  • Charities saved £200m on Stamp Duty Land Tax (SDLT).
  • £29m was collected under the Gift Aid Small Donations Scheme.
  • Gifts of shares and property totalled £70m.

Charity Tax Group (CTG) chairman John Hemming, said: “We are pleased to see that Gift Aid income has increased by £10m to £1,270m and that GASDS has increased by £3m to £29m. This shows that efforts to promote Gift Aid have been having a positive effect although more can still be done to maximise these important reliefs.

“The continued increase in the value of non-domestic rates relief for charities shows the vital importance of the current mandatory and discretionary rate relief and the importance of its continued protection”.

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Posted in Charities.