Free Advice

Autumn statement & charities/churches

Today, 5th December 2013, the Chancellor made his “Autumn statement”. Here are the Charity/Church relevant details in summary;

– Set up a new working group to revise the model gift aid declaration

– Develop new “marketing collateral” to try to increase take-up of the tax relief by donors. The Government said it wanted as many eligible donations as possible to attract gift aid, and so it will allow intermediaries to play a greater role in operating gift aid in order to reduce the number of instances where a new declaration has to be given.

– Introduce a discount of up to £1,000 on business rates for retail premises including charity shops with a rateable value of up to £50,000, for the next two years. …GOOD ONE !

– A 2% cap on business rates increases for all non-domestic rateable premises from April 2014, and a 50% discount on rates bills for all businesses occupying empty premises.

– Make company donations to community amateur sports clubs eligible for gift aid from April next year

– Bring in new legislation to make it clear that charities can benefit from partial relief from stamp duty land tax if they buy property with a non-charity. Charities will be able to claim relief on their proportion of the purchase price.

– For “high end” charities…Introduction of two social investment tax reliefs, for social enterprises and social impact bonds.

– In April of next year, the government will introduce a social investment tax relief for social enterprises. The relief will be available for equity and certain debt investment in charities, community interest companies and community benefit societies. The Government is to release more details in the coming weeks.