Gift aid for charity shops

New rules became effective from April 2013 which removed the administrative burden for charities claiming gift aid on the proceeds of donors' goods sold by charity shops. Prior to April 2013 charities had to write to each donor for confirmation that the donor is a UK taxpayer before being able to claim gift aid.

The new rules allow donors to make a one-off gift aid declaration that covers donations of up to £100 (for goods sold by a charity operating the shop directly), or up to £1,000 (for goods sold by a trading subsidiary of the charity) future sale proceeds, in a tax year. The charity will only be require to write to a donor if the sale proceeds exceed the stated amounts.

New detailed guidance on claiming gift aid under these circumstances has recently been published by HMRC.