HC Deb 05 May 2004 vol 420 cc1503-4W
John Barrett

To ask the Chancellor of the Exchequer pursuant to his answer of 23 April 2004,Official Report, column 686W, on gift aid, what assessment he has made of the effect of the abolition of gift aid claims on day memberships on donations to charities. [170046]

John Healey

I refer the hon. Gentleman to the answer I gave him on 30 March 2004,Official Report, column 1351 W, and 23 April 2004, Official Report, column 686W, and the answer my right hon. Friend the Chief Secretary gave him on 4 March 2004, Official Report, column 1042.

In last year's pre-Budget report, the Chancellor announced changes to the Gift Aid rules which aim to maintain the principles of Gift Aid as a scheme designed to encourage donations to charity.

The Inland Revenue is consulting closely with affected charities in the heritage and conservation sectors on how this may best be achieved, and to ensure that there are no unintended side-effects.

These so-called "Day Membership" schemes do not generate additional donations, but merely reclassify admission fees as donations on which Gift Aid is then claimed. The changes are therefore not expected to reduce the total amount received from individuals by these charities in donations and admission fees, although the gift aid tax relief from the Government would no longer be claimable.