Charity shops – Gift Aid

New rules on claiming Gift Aid on the proceeds of donors’ goods sold by charity shops were introduced from 6 April 2013 and on 13 May 2013. HMRC published updated guidance: section 3.51 Claiming Gift Aid when goods are sold by, and the proceeds donated to, charities. The guidance has been rewritten to include details of the two new methods that charity shops may use if they wish to claim Gift Aid on their sales of donated goods. Charities continuing to use the standard (pre-April 2013) method should be aware that HMRC has also amended the wording of the template letter it requires charities that operate the standard method to use.

IBB’s specialist charity lawyers have a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. Contact our charity law team here, call 01895 207809 or email charities@ibblaw.co.uk.