Charities benefited from an 8% increase in tax relief
Charities across the UK benefitted from £3.25 billion in tax relief last year according to the latest figures from HM Revenue and Customs (HMRC).
HMRC’s UK Charity Tax Relief Statistics show an 8% growth in tax relief in 2013/14. Business rate relief was the biggest single area of rebate at £1.59bn, followed by Gift Aid, which generated £1.06bn for UK charities last year.
Stamp Duty Land Tax relief provided £310m in income to charities and VAT relief amounted to £300m.
Individuals who gave to charities also benefited from over £1bn in tax relief, an increase in 5% on the previous year. This came mostly through inheritance tax relief and Gift Aid higher-rate relief.
The Gift Aid Small Donations Scheme, which was launched last year to help smaller charities more easily claim Gift Aid on small donations brought in just £7m to the whole UK sector, according to the figures. Chancellor George Osborne has claimed the scheme generate as much as £150m a year to charities.