Small Charitable Donations Act 2012 section 10

Connected charities and community buildings

Section 10 requires charities to repay top-up payments to HMRC where the charity was not entitled to receive them or has subsequently lost that entitlement.

• If a charity receives a top-up payment under the Gift Aid Small Donations Scheme, it must repay the amount if it turns out the charity was never entitled to it
• Repayment is also required where the charity was initially entitled but has since ceased to be entitled
• Loss of entitlement can arise for various reasons, including failure to meet the eligible charity requirements, the donations not qualifying as small donations, or breaches of the connected charities and community buildings rules
• The repayment obligation applies regardless of the specific reason for the loss of entitlement — whether it falls under one of the named provisions or any other ground

---