home | news | site index

HM Treasury News Release

174/99

28 October 1999

The research published today looks into attitudes to giving to charity. It was carried out by the Inland Revenue, the Charities Aid Foundation and the National Council for Voluntary Organisations as part of the Government's review of charity taxation.

Also published today was a summary of the 500 responses to the Government's consultation document on how the tax system could do more to support charities.

Commenting, the Economic Secretary to the Treasury, Melanie Johnson said:

"The Government is committed to encouraging Britain to become a nation of givers. I believe that the tax system can do more to encourage greater giving to charity. But we need to make the tax incentives more attractive and up to date.

"We also need to raise awareness amongst donors, and the charities they support, about how they can benefit from those incentives. The research published today shows that there is still much to be done."

Key findings show that only 43 per cent of the population are aware of the tax incentives for charitable giving. 13 per cent did not know how to use them and 11 per cent thought they would be too difficult to use.

There are issues for employers too. Less than 20 per cent said their employer offered a Payroll Giving scheme, even though giving through the pay packet is popular, especially with young people and those on lower incomes. Over 20 per cent of those whose employer did not offer this facility said they would give through their pay packet if they got the chance.

Turning to the Government's current review of charities taxation, Miss Johnson said:

"I am very encouraged with the level and content of the responses to our consultation on modernising the charity taxation system and feel there is value in publishing a summary of the responses received. We will soon be announcing the changes to be made as a result of our review."

The responses to the Government's consultation document indicated a high level of consensus on key issues. There was strong support for proposals to encourage more people to give more to charity, including:

*reducing the maximum limit for Gift Aid donations to make the scheme accessible to more people;
*re-launching the Payroll Giving scheme with a promotional campaign.

NOTES FOR EDITORS

The Review of Charity Taxation was launched in July 1997. During the first phase of open consultation, over 3,000 charities, individuals and interested parties sent in their views on a wide range of subjects. A consultation document was published on Budget Day this year containing the Government's options for further consultation. Some 500 comments were received before consultation period closed on 31 August.

As well as proposals to improve the tax incentives for giving to charity, the consultation document contained proposals to simplify the tax system for charities and improve the service they receive from Customs & Excise and the Inland Revenue:
… modernising the VAT reliefs for charities;
… extending and aligning the Customs & Excise and Inland Revenue rules for charity fund-raising events;
… providing a single telephone helpline that charities can ring for advice on all aspects of tax.

Copies of the summaries published today are being sent to all those organisations which responded to the consultation document. Further copies are available from the Inland Revenue at the address below and are available on the Treasury, Inland Revenue and Customs & Excise Internet sites at:

http://www.hm-treasury.gov.uk
http://www.inlandrevenue.gov.uk
http://www.open.gov.uk/customs/c&ehome.htm

Mrs C Reilly
Inland Revenue
Room 130 New Wing
Somerset House
Strand
London WC2R 1LB

Telephone: 0207 438 6742
Fax: 0207 438 7134
E-mail: Clare.Reilly@ir.gsi.gov.uk

More details on particular aspects of the joint programme of research into attitudes to giving to charity will be published in due course by the Charities Aid Foundation (01732 52125) and the National Council for Voluntary Organisations (020 7713 6161).

© Crown Copyright | home