What is a gift aid declaration under section 428 of the Income Tax Act 2007?

A gift aid declaration is an official statement made by an individual confirming that a donation to charity qualifies for gift aid. Under section 428, it must be given in the manner prescribed by HMRC regulations and must include all required information and statements to be valid.

What record-keeping obligations do charities and intermediaries have for gift aid declarations?

Under HMRC regulations made pursuant to section 428, charities and intermediaries must keep records of all gift aid declarations received. They must produce those records for HMRC inspection on request. Intermediaries must also provide donors with statements of account about declarations made on their behalf.

What penalties apply for failure to comply with gift aid declaration requirements?

A penalty of up to £3,000 may be imposed on any charity, intermediary, or other person who fails to comply with requirements set out in the regulations. The regulations provide for assessment and recovery of penalties, reduction in certain circumstances, and a right of appeal against any penalty decision.

When does a gift aid declaration take effect or cease to have effect?

HMRC regulations determine when a gift aid declaration takes effect, ceases to have effect, or is treated as never having had effect. These rules vary depending on the circumstances, giving HMRC flexibility to address situations such as changes in a donor's tax position or declarations given in error.

Income Tax Act 2007 section 428

Meaning of "gift aid declaration"

Section 428 defines what constitutes a valid gift aid declaration and sets out the regulation-making powers of HMRC in relation to such declarations, including record-keeping obligations and penalties for non-compliance.

A gift aid declaration must be made in the manner specified by HMRC regulations and must contain all information and statements those regulations require.
HMRC regulations may determine when declarations take effect, cease to have effect, or are treated as never having had effect, depending on the circumstances.
Charities and intermediaries may be required to keep records of declarations received, produce those records for HMRC inspection, and provide statements of account to donors who have authorised intermediaries to act on their behalf.
A penalty of up to £3,000 may be imposed for failure to comply with requirements in the regulations, with provision for assessment, recovery, reduction in certain circumstances, and a right of appeal.

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member