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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


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