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Gift Aid

Volume 460: debated on Thursday 17 May 2007

To ask the Chancellor of the Exchequer (1) what the cost was to the public purse of administering Gift Aid in (a) 2005-06 and (b) 2006-07; (137009)

(2) what estimate he has made of the cost to UK charities of administering Gift Aid claim returns in (a) 2005-06 and (b) 2006-07.

[holding answer 14 May 2007]: Gift Aid is one of a number of charitable reliefs and activities administered by HM Revenue and Customs (HMRC). HMRC does not distinguish the costs of processing Gift Aid from its other activities in relation to charities and charitable giving and does not have information available to identify the cost of processing Gift Aid by charities.

However, the HMRC Charities business stream brings together most policy, technical and operational work in relation to charities for both direct and indirect taxes. The total operational cost of this business stream was £3,342,594 (2005-06) and £3,690,339 (2006-07). These figures include the paybill costs of staff, but exclude departmental overheads such as accommodation.