HC Deb 17 July 2003 vol 409 c459W
Mr. Cameron

To ask the Chancellor of the Exchequer what estimate he has made of the amount of revenue which would be lost if the Gift Aid declaration was replaced by allowing all personal donations to charities to be free of tax; and if he will make a statement. [124909]

Dawn Primarolo

The Gift Aid scheme allows charities to reclaim basic rate tax paid on donations made to them. The donor must give a declaration that they have paid income or capital gains tax at least equal to the amount which the charity will reclaim. If the requirement for the donor to give a declaration and to have paid sufficient tax on the donation were removed and charities simply claimed the equivalent of basic rate tax on all personal donations, the additional cost to the Exchequer is estimated at about £1 billion.