The Budget & Charities in Gloucestershire


Chris Mattos (from Randall and Payne) said:
At a time when charities are struggling to maintain the level of income that they have had in the past, there will be a welcome sigh of relief following a number of announcements made by George Osborne today. The first thing to remember is that these new rules will apply to any organisation that has charitable status which will include schools.

The recent tax case involving RSPCA has highlighted the complicity of leaving money to charity in a Will. The Government have taken consideration of this with a revision to Inheritance Tax law that should make a real difference to charities. Under this measure, if an individual leaves 10% of their estate to a charity by way of a legacy, legislation is to be enacted so that their estate will now benefit from a reduction in the Inheritance tax rate from 40% to 36%.

At a time when only 30% of Gloucestershire residents have a legal Will the announcements may encourage more people to take one out. One thing that the RSPCA case has taught tax advisers is that individuals should invest in good advice to avoid problems in the future.

Another helpful measure is the relaxing of the rules surrounding Gift Aid. As a trustee of a small charity I know the red tape that is needed to go through in order to get back the tax in terms of Gift Aid payments. Firstly there is the requirement of collection of names and addresses and this is to be simplified via a new online system. Secondly, historically it has not been possible for a charity to claim Gift Aid where amounts have been collected via cash – these restrictions are to be lifted and it will become possible for a charity to claim Gift Aid in this way subject to certain limits.

For more information on how we can help you call Chris Mattos on 01453 763471