Time to reform Gift Aid tax relief for charities

The Charity Tax Commission’s latest review of the charity tax system criticised the lack of accountability over Gift Aid which is costing taxpayers £5bn a year in tax breaks to charities. Croner-i lead tax writer Stephen Relf CTA FCA explains why Gift Aid reform is overdue

Tax reliefs relating to charities – from Gift Aid to business rates relief – cost the Exchequer around £5bn a year. Two years ago, the National Council for Voluntary Organisations set up the Charity Tax Commission (CTC) to undertake a review of the tax system for charities.

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