Budget 2007

In addition to the many changes in the 2006 Charities Act, new measures affecting charities were introduced by the Chancellor in the 2007 budget. These are:

• cutting the basic rate of income tax from 6 April 2008 from 22% to 20% will reduce the amount a charity will be able to reclaim on gift aid payments
• a relaxation of the rule where a benefit received by a donor is much less than the value of the gift. The transaction is effectively a donation although the donor receives something in recognition. The limit on the benefit of gifts of £1,000 or more has been 2.5% of the gift, subject to a maximum of £250. From 6 April 2007, these limits have increased to 5% and £500. This change may be helpful at charity auctions where a very large amount is paid for a trivial purchase.

If you would like to discuss any of these changes in more detail please contact us.

We offer a comprehensive service to all types of businesses and individuals, and have the benefit of membership of the UK200 Group of Practising Accountants, enabling direct access to expertise in areas outside our normal work.

Regulated to carry on audit work for a range of investment business activities by the Institute of Chartered Accountants in England and Wales

Goldwyns | Rutland House | 90/92 Baxter Avenue | Southend on Sea | Essex | SS2 6HZ |
Tel: 01702 351412 | Tel: 01702 353071 | Fax 01702 431453 | Web www.Goldwyns.co.uk| Email| info@goldwyns.co.uk