Charities have two years to make claims for Gift Aid transitional relief

HM Revenue & Customs confirms that they can claim until 2013 for donations made before the financial year ends tomorrow


Charities have two years to claim transitional relief on any Gift-Aided donation made before 5 April, HM Revenue & Customs has confirmed.

The relief, worth about £100m a year to charities, expires tomorrow, three years after it was announced in the 2008 Budget to ensure charities did not immediately suffer the effects on charities of a 2p drop in the basic rate of tax.

The end of the relief comes as charities also come to terms with a rise in VAT at the start of the financial year, which will cost the sector an estimated £140m a year.

New charity tax reliefs that will make it more attractive to donate through legacies and easier to claim Gift Aid on small donations totalling up to £5,000 a year, both announced in the recent Budget, will not come into effect until 2012 and 2013 respectively.

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