Increase to Gift Aid Benefit Limits
The value of the benefits that donors to charities may receive without losing Gift Aid tax relief is to be increased. For donations in excess of £1,000 made by individuals and companies, the proportional limit on the value of the benefit that may be received as a result of the donation will be increased from 2.5% to 5%. The overriding limit of £250 will be increased to £500.

The increases will apply equally to benefits received by an individual as a result of making a donation to a registered Community Amateur Sports Club treated as a charity for Gift Aid purposes. The increases will take effect in relation to benefits received as a consequence of donations made on or after 6 April 2007 (for individual donors) or made in an accounting period ending on or after that date (for company donors).

Secondments to Charities and Educational Institutions
The Finance Bill will amend ITTOIA 2005, with effect from 6 April 2007, to ensure that the correct amount of salary costs are deducted when an employer seconds an employee to a charity or educational institution. The changes are intended to prevent an employer from making a deduction for remuneration where such costs are not paid within nine months of the end of the relevant accounting period.