Gift Aid for Attractions
Twelve months on from the changes in the gift aid regulations, Tourism SouthEast have produced a report on the impact of the changing rules. Led by Tourism SouthEast and sponsored by the Association of Independent Museums, the report has some interesting findings and has been welcomed by the Attractions Gift Aid Liaison Committee.
Under the new rules attractions registered as charities can now claim back Gift Aid on admission charges. Previously, only certain attractions, such as historic houses and wildlife centres, could take advantage of the tax-return scheme.
Further information on Gift Aid
Only donations at least 10% above the standard admission fee will qualify for the new tax relief and gift aid will apply
to the full amount. The donation must be made in place of the standard admission but both options must be clearly identifiable by visitors. Charities that open to the public free of charge but seek voluntary donations are not subject to this legislation but can still claim gift aid on donations in the normal way.
In order to encourage visitors to pay the larger donation figure the legislation does allow for "additional modest benefits" to be included. These could be an additional days entry or a free gift but can only carry a maximum value of 25% of the amount donated (up to £25). Donations above £1,001 have a 2.5% benefit value (up to £250). See table below for examples.
Season tickets and membership schemes are also able to benefit from gift aid which can be claimed on the full amount of the ticket/membership. However, this must allow access whenever the property is open to the public during the 12 month period. If the property is only open to the public for a limited number of months a year, gift aid still applies. Charities can exclude up to 5 days in the 12 months when the property would otherwise be open to the public and still qualify. This allows for special events which may attract a higher admission such as open-air concerts.
As with current gift aid regulations, only UK tax-payers are able to claim gift aid. Non taxpayers can still make the donation and receive any additional benefits but gift aid will not apply.
Additional guidance on Gift Aid, its application and the VAT position is available direct from HM Revenue and Customs.
The Attractions Gift Aid Liaison Group has released guidance on the national branding of gift aid for attractions and further background information.
If you have any questions, queries or difficulties regarding Gift Aid and its applications please contact Daniel Humphreys (023 8062 5499)