HM Revenue & Customs is predicting that the value of tax reliefs for charities will grow by 7.5 per cent this year, and it says it expects the Gift Aid Small Donations Scheme to have quadrupled in value.
New statistics published by HMRC yesterday estimate that charities will receive a total of £3.3bn in tax reliefs in 2014/15, up from a provisional figure of £3.07bn for 2013/14.
The 2013/14 total has been revised down from an earlier estimate of £3.25bn.
In the new publication, HMRC predicts that charities will claim a total of £23m through the GASDS. Launched in April 2013, the GASDS allows charities to claim Gift Aid-like relief on up to £5,000 of small cash donations a year without individual paperwork. The government said the scheme could be worth hundreds of millions of pounds for charities, yet it got off to a slow start.
HMRC’s provisional figure for GASDS reliefs in 2014/15 is £23m, compared with £6m in the launch year of 2013/14.
The area of tax relief experiencing the most growth is tax repayments: the £1.19bn projected for 2014/15 is 11 per cent higher than last year. VAT relief this year is projected to remain at the £300m provisionally calculated for last year, while stamp duty land tax is likely to drop by £10m to £170m.
Charitable tax reliefs for individuals are projected to rise from £1.1bn to £1.2bn, including a 12 per cent rise in the value of higher-rate relief on Gift Aid covenants, which are predicted to reach £470m.