Increase in substantial donor to charity threshold
The measure
If a charity enters into certain specified transactions with a substantial donor this can result in a tax charge on the charity. The rules are designed to prevent individuals from using charities to avoid tax rather than for charitable purposes.
There are annual and six yearly thresholds of gifts by which an individual can be a substantial donor. The annual threshold is to remain at £25,000, but the six year threshold of total gifts is to increase from £100,000 to £150,000.
Who will be affected?
Charities and their donors.
When?
On and after 23 April 2009.
Our view
This will ease the burden of these provisions for charities and their substantial donors.
