§ Mr. BurnsTo ask the Chancellor of the Exchequer if he will introduce legislation for the measures he announced in his Budget to give further encouragement to charitable giving through the gift aid scheme and covenants.
§ Sir John CopeYes. As announced in the Budget, the forthcoming Finance Bill will include provisions to reduce from £600 to £400 the minimum limit on donations qualifying for tax relief under the gift aid scheme and to relax the rules for tax relief for some charitable covenants. We now propose that these changes should apply from today, 7 May, instead of 1 July as originally proposed.
The Inland Revenue will also be introducing simpler procedures for tax repayment claims by charities from 1 July.
I hope that charities will find these measures helpful and will make full use of them. Further details are given in an Inland Revenue press release published today.