Gift Aid Forum considers three options for reform

Charity and Treasury representatives will put together proposals in time for the next Budget

A group of charity and Treasury representatives is considering three main options for Gift Aid reform.

The Gift Aid Forum, a discussion group involving major charity umbrella bodies and the Treasury, meets every two months to discuss reform to Gift Aid.

Nick Carey, policy officer at chief executives body Acevo, said after a meeting yesterday that three main options remained on the table.

The first would involve no significant changes to the Gift Aid system, but a simplification of its administration. The second would involve a composite rate: all donations would get a higher rate of relief, but donors who paid higher rates of income tax would no longer be able to claim any personal tax relief. The third would involve a composite rate, but with an exemption for major donors.

"Now we’ll put together a series of joint proposals, targeting new legislation in the next Budget," Carey said.

A Treasury spokeswoman said Peter Fanning, chief executive of the Chartered Institute of Taxation, would draw up a joint report on possible reform, taking into account the wider views of the sector.

The report would be presented in draft form at the next meeting of the Forum on 9 September, and finalised by the end of the month.

Helen Donoghue, director of the Charity Tax Group, who also attended the meeting, said she was pleased to see progress on the matter.

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