Updated guidance has been issued by HMRC regarding the Gift Aid Small Donations Scheme (GASDS). The new guidance enables a charity or Community Amateur Sports Club (CASC) to claim top-up payments on small donations of up to £20. It also includes revisions to the section covering community buildings.
Under the new rules, a charity with two or more community buildings can collect a maximum of £8,000 worth of donations. The £8,000 can either consist of small donations collected anywhere in the UK or small donations for each community building collected in the same local authority area.
The charities are free to choose between the two options on what can benefit them the most. However, HMRC suggests that the best option for a charity with fewer than two community buildings is to claim on small donations collected anywhere in the UK.
Additionally, from April 2017, charities can claim top-up payments on small donations collected at any time. These donations don’t have to be collected during a charitable activity and community buildings rules will still apply. The guidance also states that charities can claim top-up payments on donations collected in community buildings before 6 April 2017 for two tax years after the collection date.
To qualify as a community building, charities should not charge a fee to enter the building on which the charitable activities take place. These charitable activities must include at least 10 people who will benefit from the activity. It must take place at least 6 times a year and be open to members of the public.
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