Two high-profile charity tax benefits unveiled in the Budget will be worth an estimated £540m to the charity sector between 2012 and 2016, rather than annually, the Treasury has confirmed.
Chancellor George Osborne last week announced a new system that will allow charities to claim Gift Aid on £5,000 of donations without paperwork, as well as a 10 per cent reduction in inheritance tax for anyone leaving 10 per cent of their estate to charity.
In his speech to parliament, Osborne said the Gift Aid move would benefit 100,000 charities "to the tune of £240m" and said the inheritance tax relief measure would be worth £300m to charities, but did not spell out the timescales involved.
Asked to clarify the issue, a spokesman for the Treasury said it expected that the Gift Aid small donations scheme would be worth £240m from when it begins on 5 April 2013 until the same date in 2016.
Inheritance tax relief would be worth £300m to charities from when it begins on 5 April 2012 until the same date in 2016, he said.
The spokesman said he expected the value of the tax reliefs to rise over the years. He said the small donations scheme was predicted to be worth £115m a year in the final year, but was not able to give an exact figure for inheritance tax relief.