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Gift Aid

Volume 717: debated on Thursday 4 February 2010


Asked by

To ask Her Majesty's Government whether they will remove the requirement upon charity retail shops to contact donors of goods where Gift Aid is used to reclaim tax asking if the donor agrees to the charity retaining the tax contribution once the goods have been sold. [HL1692]

Gift Aid applies only to donations of money. In order for the proceeds from the sale of donated goods to qualify as a gift under the current Gift Aid legislation, the donor must know the amount for which the goods have sold and confirm that this amount is to be treated as a gift. It is only after the goods are sold that the donor can confirm that they have paid the tax which is to be repaid to the charity. Without these assurances Gift Aid cannot apply to the gift, which is why there is a requirement to contact the donor.