What does the budget mean for Charities?

News

24 March, 2011

Following on from the budget, which was hailed by George Osbourne as the 'most radical and most generous reforms to charitable giving for more than 20 years' the Charities Group at Forbes Solicitors has put together a summary of the key changes affecting Charities after the Budget.

Gift Aid

Charities will no longer have to get written confirmation of every UK resident's identity in order to claim tax back on smaller donations of up to a total of £5,000.

Inheritance Tax

If a taxpayer leaves 10% of their estate to charity their Inheritance Tax rate will be reduced by 10%. This is expected to benefit charities to the tune of £300million.

Approved Mileage Allowance Rate

The newly-increased HMRC Approved Mileage allowance will apply to volunteers travelling as passengers allowing them to get back some of what it costs them to volunteer.

Presents given to donors

A cap on value of presents given by charities to donors is to rise from £500 to £2,500. Previously gifts given as a means to thank a donor have been limited by the cap.

The Charities Group at Forbes is made up of members of the business law, commercial property, employment and dispute resolution departments. If you need any assistance please do not hesitate to contact any member of the team

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