Small Charitable Donations Act 2012

1 Top-up payments in respect of small donations made to eligible charities

(1) A charity is entitled to a payment from HMRC (a “top-up payment”) if—

(a) the charity is an eligible charity for a tax year,

(b) the charity has made a successful gift aid exemption claim in respect of gifts made to it in the tax year,

(c) small donations are made to the charity in the tax year, and

(d) the charity makes a claim in respect of small donations made to it in the tax year.

(2) The amount of the top-up payment is—

where—

• SD is the amount of the small donations to which the claim relates, and

• R is the percentage rate of the basic rate of income tax for the tax year in question.

(3) A charity is not entitled to top-up payments in respect of small donations made to it in a tax year in excess of the maximum donations limit for the charity for the tax year.

(4) The “maximum donations limit” for a charity for a tax year is—

(a) an amount equal to 10 times the gift aid donations amount for the charity for the tax year, or

(b) if less, the specified amount for the charity for the tax year.

(5) The “gift aid donations amount” for a charity for a tax year is the amount of the gifts made to the charity in the tax year and in respect of which it has made successful gift aid exemption claims.

(6) The “specified amount” for a charity for a tax year is £5,000.

(7) This section is subject to sections 4, 6 and 9 (connected charities and charities running charitable activities in community buildings).