New rules on donor benefits and Gift Aid will be introduced next year, the government has confirmed.
The move will enable charities to give donors a higher level of benefit and still claim Gift Aid on certain donations.
At present, a charity cannot claim Gift Aid on a donation from which a donor receives any sort of benefit, such as a thank-you gift, unless the donation is worth significantly more than the value of the benefit.
For donations of up to £100 the benefit can be worth up to 25 per cent of the donation; for donations of between £100 and £1,000, the benefit value is capped at £25; and for donations of more than £1,000, the benefit can be up to 5 per cent of the donation, up to a maximum benefit of £2,500.
But from 1 April, the number of monetary bands will reduce from three to two, the government said.
The benefit threshold for the first £100 of a donation will remain at 25 per cent.
Charities can offer an additional benefit of 5 per cent to donors on the amount of the donation that exceeds £100.
The government said in the 2014 Autumn Statement that Gift Aid donor benefit rules would be reviewed with the intention of simplifying them.
After a three-month consultation by the Treasury and HM Revenue & Customs in 2016, proposals were put out to a second consultation in 2017. The model that will be adopted next year was the most popular.
A spokesman for the Charity Tax Group, which supports the move, said having two thresholds rather than three would be easier for charities to understand.
HMRC said in a statement: "The changes in this measure will introduce a simpler and a more generous two-threshold benefit valuation rule for charities, making it easier to claim Gift Aid on eligible donations and so increase the overall number and value of claims."