Three main changes have been proposed.
1. Relief for gifts of Real Property
Where an individual or company wishes to give land or buildings to charity, the Government proposes there will be an income or corporation tax relief for such donors. The relief will be available for gifts of freehold or leasehold property, which a charity agrees to accept.
2. Giving to Charity Through the Tax Return
The Chancellor has announced that, with effect from 2003/04 there will be new incentives to encourage taxpayers to give to charity when they make their annual tax return. The main incentives are:
- advertising the facility on the tax return and making it easy for taxpayers to donate;
- allowing higher rate taxpayers to carry back their portion of Gift Aid relief (18 per cent) to the previous year; and
- allowing taxpayers to nominate a charity to receive all or part of a tax repayment that is due to them.
3. Community Amateur Sports Club (CASCS)
Sports clubs which meet the statutory definition will qualify for certain tax breaks. Also there will be tax relief provisions designed to encourage people to make gifts to CASCs.