Chancellor Announces Simplified Gift Aid Donor Benefit Rules | Budget 2017

Budget 2017 Charity Sector

Hidden among various changes announced yesterday by the chancellor were the revised Gift Aid Donor Benefit rules. Chancellor Philip Hammond announced changes to the rules on how much benefit a charity can give to donors and still be able to claim Gift Aid.
At present there are three thresholds,

  • 25% limit on benefits for donations up to £100;
  • Maximum of £25 for donation between £101 and £1,100
  • 5% of the donation from £1,001+ (up to a maximum of £2,500)

Now the chancellor has scrapped the middle threshold to leave us with the first and the third thresholds. In other words, it means the same rules apply to donations up to £100. For donations of £101 and above, charities can provide benefit of 25% for the first £100 and then 5% for the rest with a maximum benefit threshold of £2,500.
The above changes will come into effect from April 2019.
The chancellor didn’t go as far as removing the monetary threshold on benefits altogether which would have simplified the rules for those charities offering discounts for entrance fees or even priority booking facility.
For more information on the Autumn Budget and how it will have an impact on the charity sector, read our article here.
If you need further advice regarding the budget and have any queries in relation to your charity, contact our partner Suda Ratnam on 020 8418 2681 or