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6 April 1999
MILLENNIUM GIFT AID EXTENDED TO CHARITIES WORKING WITH KOSOVAN REFUGEES
All charities helping refugees from Kosovo are to benefit from an extension to the Millennium Gift Aid scheme, announced Chancellor Gordon Brown today.
The extension means that donations to charities helping Kosovan refugees will from today come within the scheme, regardless of where the refugees are situated.
Chancellor Gordon Brown said:
"Everyone has been moved by the plight of the people of Kosovo. Many charities in the UK are already swinging into action in response to the crisis. This change to the Millennium Gift Aid scheme will enable taxpayers in the UK to do their bit to help and ensure that Government money backs up their donations."
NOTES TO EDITORS
1. Millennium Gift Aid was introduced by Chancellor Gordon Brown in his 1998 Budget. It provides tax relief on donations of £100 or more by an individual to support education and anti-poverty projects in the world's 80 poorest countries.
2. Donations under Millennium Gift Aid may be made in a single payment or by instalments. The total donations must reach at least £100 by 31 December 2000 in order to qualify for the tax relief. The Inland Revenue adds basic rate tax to the donation, so that every £100 donated is worth almost £130 to charity.
3. At present, there are 80 countries which can benefit under the scheme. These are the countries eligible for lending either by the International Development Association (IDA), or jointly by the IDA and the International Bank for Reconstruction and Development, both organisations of the World Bank.
4. At present, donations made by instalments are aggregated and treated as a single donation, made on the date of the last instalment. Charities get tax relief at the basic rate in force on that date. On 18 March the Chancellor announced that the rules of the scheme are being changed in this year's Finance Bill so that the tax that charities can reclaim will be calculated at the basic rate of tax for the year in which the first instalment is paid. This way, donors and charities will know form the outset at what rate tax relief will be available.
5.Under the change announced today, legislation will be brought forward in the Finance Bill to extend the purposes for which Millennium Gift Aid donations may be made. The new category will be for the relief of the poverty of refugees from designated countries or territories. It is intended to designate Kosovo.
6.The Millennium Gift Aid scheme is being promoted under the Gift Aid 2000 campaign. People can call a local rate number - 0845 075 2000 - to make donations. Many of the charities participating in Gift Aid 2000 are helping the Kosovan refugees and people can make their donation via the Gift Aid 2000 phone line.