Kingston Smith

Autumn Budget 2017: Not for Profit

As ever, there were a small number of changes that will be of interest to those within different parts of the Not for Profit sector.

Gift Aid donor benefit rules

Charities must assess the value of any benefits given to donors in exchange for donations. Where these are in excess of certain limits the donations will not qualify Gift Aid.

Following consultation, the government will simplify the rules to create two percentage limits to apply from April 2019:

  • The benefit limit for the first £100 of the donation will remain at 25% of the amount of the donation
  • For larger donations, charities will be able to offer an additional benefit to donors up to 5% of the amount of the donation that exceeds £100

The total value of the benefit that a donor will be able to receive will remain at £2,500.

KS comment:

Those in the NFP sector may not relish the need to get used to a new set of rules. However, overall we expect that they will welcome this simplification, which will remove a previous “cliff-edge”.

Social Investment Tax Relief

As announced last year, investments in social enterprises trading as nursing and residential care homes will be able to qualify for the social investment tax relief via an accreditation scheme. The government has announced that the accreditation scheme is likely to include a requirement for a minimum number of local authority-funded beds.

KS comment:

The proposed extension of the relief will be welcomed by some investors, providing the details of the accreditation scheme do not prove to be too restrictive.