Sun Apr 19 2020
Some charities will be able to keep the Gift Aid associated with payments made for events cancelled due to the coronavirus, the Government has confirmed
The Government have now confirmed that certain charities will be able to keep Gift Aid payments they’ve received for any events that had previously been organised but then cancelled due to the coronavirus pandemic.
The CTG (Charity Tax Group) actually suggested this approach last month as one of several methods that tax relief could help charities during the pandemic.
Under the offer, if a person chooses not to claim a refund for a charity event they’d paid to attend which is then cancelled due to the coronavirus, the value of that refund would be treated as a donation and would therefore be eligible for Gift Aid.
Then, last week, Government minister Lord Agnew, whilst responding to questions in the House of Lords, confirmed this would be made reality for “theatres and other cultural venues recognised as charities”
Theatres and other cultural venues recognised as charities by HMRC can claim Gift Aid on freely given donations, as opposed to payments for goods or services, such as admission tickets.
These charities can claim Gift Aid on the value of tickets for cancelled events if the patrons have agreed not to be refunded for the cost of the ticket and agree for the same amount to be treated as a donation. Additionally, the charity will also need to make sure the patrons have made a Gift Aid declaration for their donations to qualify for Gift Aid, confirming that they have, or will have, paid enough tax to cover the amount the charity will claim on their donations.
When asked for comment, John Hemming, chair of the CTG responded:
CTG is liaising with HMRC and DCMS, as well as affected charities, to confirm the scope and mechanics of using Gift Aid in this way, as it should hopefully have a broader application to all charity events disrupted by Covid-19. Our hope is that the system will be as easy and frictionless as possible, with guidance issued quickly to ensure charities can benefit from this Gift Aid as soon as possible.
Sun Apr 19 2020