Ian Murray – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Ian Murray on 2015-10-21.

To ask Mr Chancellor of the Exchequer, with reference to Part 2 of the Scotland Bill 2015, what assessment he has made of the potential effect of the planned transfer of income tax powers on the operation of Gift Aid in Scotland.

Damian Hinds

The effective operation of Gift Aid, which enables charitable donations to be made free from tax, is a vitally important issue for Government, charities and their donors in all parts of the United Kingdom. The UK Government works closely with the charity sector to ensure that Gift Aid works effectively for charities and their donors.

We consulted the charity sector fully in advance of agreeing the arrangements for the continued operation of Gift Aid under the Scottish Rate of Income Tax, which will come into effect in April 2016. Under the agreed arrangements Gift Aid will continue to operate at UK-wide rates, a solution that means no extra complexity, uncertainty or administrative burden for the charity sector or donors.

Similarly, we are fully committed to consulting the charity sector – in Scotland and the rest of the UK – to fully understand the impact of the devolution of income tax powers as proposed by Part 2 of the Scotland Bill 2015 ahead of agreeing arrangements for the continued operation of Gift Aid.