10 March 10
Gift Aid is a tax relief for charities and for people who choose to donate to charities. Their aim is to encourage people to donate to charities both during their life times and on their deaths.
Recently, the Government has discovered a scheme that exploits the relief available for donations of listed shares and other types of qualifying investments (including land) to charities in section 431 of the Income Tax Act 2007 and section 587B of the Income and Corporation Taxes Act 1988.
The Government is proposing to introduce legislation in the Finance Bill 2010 which will reduce the tax relief on such arrangements where the acquisition was made as part of a tax advantage scheme. The legislation will not affect genuine donations to charity where tax avoidance arrangements are not involved.
If you have any questions on Tax issues, please contact Nia Wharry on Tel: 01256 320 555.
