Charities: Tax Allowances
(asked on 21st June 2022) - View Source
Question to the HM Treasury:
To ask Her Majesty's Government how much tax is forgone annually by HM Treasury as a result of the tax exemptions for charities’ (1) donations, (2) investment income, and (3) gains on capital investments.
Tax relief is available on donations to charity by individuals and organisations, and to charities for their activities, including investment income.
Estimates for tax reliefs on charitable donations by individuals are published in “UK charity tax relief statistics”. The table below is an extract from the latest edition, showing these estimates for the previous 5 tax years.
Extract from Table 1 and 2: Estimates for UK charities tax reliefs. Updated November 2021
Restricted to those reliefs for which accurate figures can be estimated
£m | Reliefs paid to charities | Reliefs paid to individuals | |||||
Tax Year | Gift Aid | Gift Aid Small Donations Scheme | Interest, royalties, trust donations etc | Inheritance Tax | Payroll Giving | Gifts of shares and property | Higher Rate Relief on Gift Aid |
2016-17 | 1,270 | 30 | 10 | 660 | 40 | 60 | 410 |
2017-18 | 1,260 | 30 | 10 | 700 | 40 | 60 | 480 |
2018-19 | 1,350 | 40 | 10 | 800 | 40 | 70 | 500 |
2019-20 | 1,400 | 40 | 10 | 840 | 40 | 70 | 490 |
2020-21 | 1,380 | 30 | 10 | 860 | 40 | 70 | 490 |
Information about tax relief on charities’ investment income, and on charitable donations by organisations is not readily available.