Three-year transition period for Gift Aid relief when basic income tax rate falls to 19%

Three-year transition period for Gift Aid relief when basic income tax rate falls to 19%

Rishi Sunak announced plans to reduce the basic rate of income tax to 19% from April 2024 in his Spring Statement last week.

The change will be implemented in a future Finance Bill, and to alleviate the reduction in Gift Aid that would otherwise follow, the government has promised a three-year transition period for Gift Aid relief. This will maintain the income tax basic rate relief at 20% until April 2027.

Charity Tax Group (CTG) representatives have spoken to HMRC officials and understand that the transitional relief mechanism will operate in the same way as it did previously . CTG […]

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