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Written question asked by Lord Vinson (Conservative) on Tuesday, 21 June 2022, in the House of Lords. It was due for an answer on Tuesday, 5 July 2022. It was answered by Baroness Penn (Conservative) on Tuesday, 28 June 2022 on behalf of the Treasury.

Charities: Tax Allowances

Question

To ask Her Majesty's Government how much tax is forgone annually by HM Treasury as a result of the tax exemptions for charities’ (1) donations, (2) investment income, and (3) gains on capital investments.

Answer

Tax relief is available on donations to charity by individuals and organisations, and to charities for their activities, including investment income.

Estimates for tax reliefs on charitable donations by individuals are published in “UK charity tax relief statistics”. The table below is an extract from the latest edition, showing these estimates for the previous 5 tax years.

Extract from Table 1 and 2: Estimates for UK charities tax reliefs. Updated November 2021

Restricted to those reliefs for which accurate figures can be estimated

£m

Reliefs paid to charities

Reliefs paid to individuals

Tax Year

Gift Aid

Gift Aid Small Donations Scheme

Interest, royalties, trust donations etc

Inheritance Tax

Payroll Giving

Gifts of shares and property

Higher Rate Relief on Gift Aid

2016-17

1,270

30

10

660

40

60

410

2017-18

1,260

30

10

700

40

60

480

2018-19

1,350

40

10

800

40

70

500

2019-20

1,400

40

10

840

40

70

490

2020-21

1,380

30

10

860

40

70

490

Information about tax relief on charities’ investment income, and on charitable donations by organisations is not readily available.

Secondary information

Type
Written question
Reference
HL1178
Session
2022-23
Subjects
Charities Tax allowances
Contains statistics
Yes
Link
View this Written question on www.parliament.uk