Parishes Funding- Gift Aid

Reduction in Tax Rate from April 2008

The reduction in the basic Tax Rate from 22% to 20% from April 2008 has now received royal assent.   This would have meant a substantial reduction in Gift Aid tax claims, but the Chancellor has introduced Transitional Relief for three years, which will make up the different.  

For Gifts made after 6th April 2008, Parishes will receive Tax Refunds of 25% of the net sums received under Gift Aid and a further 3% Transitional Relief, making up the full 28% Tax Gift Aid refund which applied before the tax rate reduction.

Until the Act received royal assent the Inland Revenue have only been refunding the Tax Relief of 25%, but they will now start paying out the additional Transitional Relief on those claims.   For future claims, the full amount will be received in one sum.

If you have any queries on Gift Aid, please contact our Gift Aid Administrator, Jill Stanforth at jillstanforth@southwell.anglican.org  

Internal Audits

All Parishes claiming Gift Aid tax refunds through our diocesan Gift Aid Administrator will be aware that Internal Audits are being introduced from 2009, avoiding the need for future full Inland Revenue audits.   If you have not yet returned your Gift Aid Internal Audit Questionnaire, please send it to Jill Stanforth as soon as possible, or contact her on jillstanforth@southwell.anglican.org with any queries.