Retail Gift Aid budget win for Charity Retail Association

Win for Charity Retail Association as Chancellor confirms new de minimis limit on Retail Gift Aid letters in 2018 budget

Following a yearlong campaign, The Charity Retail Association is delighted to welcome the budget announcement of a relaxation of the rules surrounding retail Gift Aid letters.

Currently charities must write to donors of Gift Aided second-hand goods every year to tell them of the proceeds resulting from their donation, no matter how small those proceeds are. After extensive lobbying by the Charity Retail Association and the Charity Tax Group, the Chancellor has accepted that such letters need only be written every three years, provided that the proceeds are less than £20 per year

Charity Retail Association Chief Executive, Robin Osterley, said: “Although this may seem like one of the smaller and less dramatic announcements of the budget, the impact it will have on charities is actually very substantial, saving hundreds of thousands of pounds per year across the charity retail sector, and relieving charities of a considerable administrative burden. We are very pleased that our lobbying efforts, together with our partners the Charity Tax Group, have brought about this very beneficial change”.

Charity Tax Group vice-chairman Richard Bray said: “For charities, contacting supporters can be an expensive process in terms of time or money. Many charities have also received negative feedback from donors about them “wasting charity resources” by sending letters about Gift Aid claims for a small sums. These new rules are therefore a very welcome practical change and we are grateful to HMRC for listening to our concerns. We look forward to continuing to work with the Charity Retail Association to make the Retail Gift Aid process as straightforward and effective as possible for charities, donors and HMRC.”

The change will be implemented next year, and more details on procedures and methods will follow when known.


Notes to editors

For further details or comment, call our Head of Public Affairs, Matt Kelcher on 020 7697 4075/0785 307 2000, or email

The Charity Retail Association is the only body in the UK which represents the interests of charity retailers. We represent around 80 per cent of all charity stores in the UK. Our members range from national chains, to individual hospice shops, and everything in-between.

Confirmation of the change can be found at section 3.16 of the Budget Red Book.