The amount of Gift Aid paid out on charitable donations fell slightly in the year to March 2017, following two years of sharp increases, potentially indicating a drop in the amount given to charity.
The amount of Gift Aid claimed fell from £1.3bn to £1.28bn, according to provisional figures published today by HM Revenue & Customs.
The figures show tax relief claimed in the year by charities. Normally, Gift Aid claims correspond very closely with total donations, and the general trend has been for charities to grow more efficient at claiming Gift Aid. Donations might also be expected to rise in line with inflation.
All of this suggests that a fall in Gift Aid may correspond with a drop in donations. However as the sector has four years to reclaim Gift Aid, the figures do not necessarily prove that there has been a drop in income.
In the previous two years, Gift Aid had risen from £1.06bn to £1.3bn.
Total tax relief to charities also fell very slightly, from £3.82bn to £3.77bn, mostly due to a drop in relief on stamp duty.
Tax relief to donors rose from £1.41bn to £1.47bn. Inheritance tax rose by £40m, and relief for higher rate donors rose by £20m.
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