View more on these topics

Charitible Giving

In the pre-Budget report on 9 November 1999 the Chancellor announced a package of tax incentives aimed at modernising and simplifying the tax system to boost giving to charity. The Getting Britain Giving package included:



 abolishing the £250 minimum limit for Gift Aid donations;



 allowing donors to join the Gift Aid scheme by telephone or Internet;



 abolishing the £1,200 annual maximum limit for payroll giving;



 a 10% supplement on payroll giving donations for three years from April 2000;



 a new tax relief for gifts of listed shares and securities



 removing existing barriers facing those who wish to give to charities using certain


settlor interested trusts;



 extending and aligning the income tax and VAT exemptions for charity fund-raising events;



 broadening the VAT zero rate for charity advertising;



 greater VAT relief for the sale by charities of donated goods to disabled people and those on means-tested benefits;



 extension of VAT relief for the provision of bathrooms for disabled people in day-centres, sheltered accommodation and houses owned by charities; and



 an increase to £1000 in the limit below which charities and other businesses do not have to account for VAT on goods on hand when they become de-registered.



Additional measures to boost charitable giving even further were announced by the Chancellor in the Budget.



These measures will



 extend the new tax relief for gifts of shares to charities to cover a wider range of shares and securities than previously announced so that relief will now extend to gifts of units in unit trusts and shares in OEICs as well as holdings in foreign collective investment schemes and unlisted shares and securities dealt in on a recognised stock exchange, such as shares traded on the Alternative Investment Market.



 allow non-resident individuals and companies to make Gift Aid donations



 extend the VAT exemption to more fund-raising events than previously announced



 broaden the VAT zero rate for the sale or hire of donated goods

Recommended

Easing of EIS and VCT rules may mean more sales

The four technical changes to the rules surrounding EIS and VCTs should provide a boost to this type of entreprenurial investment. Perhaps particularly important is the reduction from five to three years in the minimum period for which investments must be held if they are to qualify for income tax relief under the schemes, and […]

Weak attempt to stamp on house price inflation

IFAs are branding the Chancellor&#39s increases in stamp duty on property a damp squib which will do nothing to slow the runaway housing market.The Chancellor raised stamp duty by 0.5 per cent to 4 per cent on property sales above £500,000 and 3 per cent on sales above £250,000.Below the £250,000 threshold, the figure remains […]

Minimum Income Guarantee

The MIG was introduced by the Government to provide financial support for the poorest pensioners. It was introduced to replace income support which was felt as providing an inadequate benefit, and which was not claimed by many eligible recipients. The Government has not only announced that it will increase the MIG in line with earnings […]

Mig review too late for the start of stakeholder

The pension industry believes the Government has woken up to the threat of a pension misbuying scandal but warned it may be too late for the first stakeholder clients.The Chancellor announced a review of the minimum income guarantee in Tuesday&#39s Budget.The pension industry had feared that, under current rules, saving into a stakeholder would become […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment