Budget 2000: The Arts - Cultural world greets `Gift Aid'

NEW TAX benefits for giving to charities received an immediatewelcome from arts companies, many of which are registered charities.Encouraging donations through tax benefits has long been requested bythe arts world, and was previously the subject of a campaign by TheIndependent.

Chris Smith, the Secretary of State for Culture, said last night:"This is a chance not just to make giving more effective; not just toencourage more giving; but to change the culture of giving toculture. We have a long and proud tradition of philanthropy andprivate patronage, and a long tradition of generous giving tocharities of many kinds. This is the chance to bring those traditionstogether, to encourage everyone who values and cherishes the heritageand the arts of this country to develop the habit of supporting themfinancially, to make patrons of us all."

The Chancellor has made four main changes that the Department ofCulture says will interest all cultural charities. The most importantfor the arts is the simplification of gift aid (gifts of cash byindividuals). From next month, any donation to a charity from a taxpayer will be eligible for income tax relief. All that is required toclaim the relief is information showing who has given how much and adeclaration that the donor wants the tax to be reclaimed (which canbe a written document, or a registration of a gift made by phone orthe internet). Donors won't need to fill in any complex forms, therewill be no minimum donation to qualify for tax relief, and donorswon't have to agree to go on giving money in the future.

This contrasts with the previous rules, under which tax relief wasavailable only if either a single donation was of at least pounds250, or the donor agreed to give regular sums for a fixed period,generally of at least four years. From now on, all donations, whetherpounds 1 or pounds 1,000, and whether made once or made every month,qualify for tax relief.

There will also be improvements to the payroll giving scheme, withthe existing ceiling for tax relief of pounds 1,200 abolished, a newincome tax relief for gifts of shares, and simplification of therules for gifts from companies.

Gerry Robinson, the chairman of the Arts Council, said: "This is ahuge boost for the arts. We are delighted to see that the Chancellorhas listened to the arguments for this new approach. The Arts Counciland Charities Aid Foundation will work together to make it as easy aspossible for organisations to benefit from these changes.

"The Arts Council has been pressing for some time for additionalincentives to donors and simplifications to the tax regime. We areconvinced that arts organisations everywhere will feel the benefit ofthese changes in the coming year."