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Gift Aid Small Donations Banana Skins

By Kevin Russell | 1 December 2013

Giftaid small donations banana skins

Some GASDS banana skins when converting from charitable trust to CIO.

As churches and charities get accustomed to claiming top up payments under the new Gift Aid Small Donations Scheme (GASDS), some banana skins are emerging where the church or charity converts from a charitable trust to a Charitable Incorporated Organisation (CIO) or other form of incorporated charity, such as a charitable company limited by guarantee. At the time of writing, these banana skins are not apparent within HMRC Guidance and can only be found by studying the finer print of the Small Charitable Donations Act and the regulations supporting the Act.

The key traps to avoid are:

- Very specific and short time limits for applying for an HMRC certificate to enable the new charity to continue to claim under the GASDS;

- Getting the application for a certificate right, first time;

- Ensuring that the application conditions are fully complied with;

- Planning to maximise the GASDS claims in the tax year of the conversion.

Our new Briefing Note “Beware! GASDS banana skins when converting from charitable trust to CIO” is available from our website here.


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Posted by Kevin Russell

Our Legal Eagle guru and Stewardship's Technical Director, Kevin constantly has his finger on the pulse of all things tax and charity law-related. His briefing papers for charities, churches and individuals are an invaluable resource on everything from VAT to Gift Aid. 


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