HM Insights

Coronavirus: charities, Gift Aid & cancelled events

In the current economic climate many individuals are relying on the financial support the Government has recently announced. However, what about the assistance that has been made available for charities?

Some of the general changes made recently amid the Covid19 pandemic - such as the Job Retention Scheme - apply to charities in the same way as they apply to any other employer.

Coronavirus-legal-updates-2020.jpg (1)

More specifically, though, the Chairman of the Charity Tax Group John Hemming wrote to the Chancellor in March and requested a number of proposals for additional support for charities during this difficult time, including allowing charities to keep the Gift Aid for cancelled events.

The proposal suggested that: "On an exceptional basis, for the duration of the coronavirus crisis, HMRC should allow Gift Aid to be eligible on any refund donated to charities in lieu of cancelled tickets or debts not to be collected. While Gift Aid would not ordinarily be eligible on such gifts this would help to recognise the generosity of the British public and incentivise them to not seek refunds from charities."

As a result the Government have now confirmed that theatres and other cultural venues recognised as charities by HMRC will be permitted to claim Gift Aid on the value of tickets for cancelled events if the patrons have agreed not to be refunded for the cost of the ticket. In this case the ticket cost will be treated as a donation.

The Gift Aid scheme increases the value of a donation by 25% so these measures will provide charities with essential financial support over the next few months.

Get in touch

if your charity would like to find out more about how the Coronavirus might affect it, please get in touch with a member of our team.

Useful links

CORONAVIRUS LEGAL ADVICE

CHARITIES

PERSONAL TAXATION ADVICE