As previously announced draft clauses to abolish SA Donate and to put on a statutory basis HMRC’s practice of allowing charities and CASCs to claim tax repayments during the tax year have been published.
Baker Tilly analysis
These are both sensible measures.
SA Donate, the system that allows an individual to have a tax repayment made to a nominated charity by HMRC, is expensive to run, is little used and is to be abolished from 6 April 2012. HMRC say they will put the resources saved into developing an online Gift Aid system which will ultimately benefit many more charities. Taxpayers can still, of course, donate tax repayments they receive to charity.
Claiming Gift Aid repayments was put on a statutory footing in 2010. The proposed change on in year repayments extends this to other repayments of tax to charities.