2013/14 tax relief estimates

Tax reliefs for charities and donors are expected to rise by £360million to £4.41billion in 2013/14, according to estimated figures published by HM Revenue & Customs (HMRC).

The figures, which can be accessed at www.hmrc.gov.uk/statistics/charity/table10-2.pdf, show that gift aid is expected to rise by around £50million, to £1.11billion.

This follows two successive years where gift aid fell by £20million per year. HMRC attributes these falls to the end of transitional relief, which was introduced in 2008 to compensate when the basic tax rate fell from 22 percent to 20 percent.

The figures also show that £2million has so far been collected under the gift aid small donations scheme.

The figures show that business rate relief is expected to rise by £70million, to £1.63billion, while inheritance tax relief is expected to rise £30million to £500million.

Stamp duty land tax relief is expected to grow from £140million to £260million, a rise of 73 percent.

Altogether, relief to charities is expected to rise 10 percent, to £3.3billion, while relief to donors is expected to rise 5.7 percent, to £1.11billion.

HMRC has also published a commentary, which can be downloaded at www.hmrc.gov.uk/statistics/charity/commentary.pdf, on tax reliefs from 1990 to 2013, which shows that tax reliefs for charities rose by roughly 150 percent during that period, while tax reliefs for individuals rose by more than 400 percent.