On Tax Administration and Maintenance Day earlier this year, two consultations were launched of particular relevance to the charity sector.
Firstly, there was the announcement of the Government’s future engagement with stakeholders on reforming Gift Aid. It is understood this will involve assessing how administrative burdens can be eased through the use of digital technology, as well as developing new ways to test future Gift Aid development ideas using digital sandboxes.
The second consultation related to tax compliance, and plans for ‘reasonable and proportionate’ changes to reform tax relief rules that will supposedly help tackle non-compliance and protect the integrity of the sector. Four areas are being considered as part of the consultation:
- Preventing donors from obtaining a financial benefit from their donation and the operation of the Tainted Charity Donations rules
- Preventing abuse of the charitable investment rules
- Closing a gap in non-charitable expenditure rules
- Sanctioning charities that do not meet their filing and payment obligations.
Both consultations have now closed and we await announcement from HMRC of what changes to the tax regime they propose to make, details of which will be covered in future editions of our Charity E-Newsletter.