Local registered charities can currently reclaim a 25% tax rebate on donations from individuals of between £500 and £10,000, meaning the most a charity can receive on top of a single gift is £2,500.
The Policy & Resources Committee is recommending what it calls ‘a large increase’ to the maximum donation that qualifies, lifting the ceiling from £10,000 to £50,000.
On a donation of that size, the amount a charity could claim back would rise from £2,500 to £12,500.
The rebate works by allowing charities to reclaim tax already paid by the donor, topping up the value of a gift at no extra cost to the giver.
The maximum qualifying donation was last increased only in 2025.
The committee estimates the change would reduce States income by about £400,000 a year.
It is one of a small number of Budget measures that give money back rather than raise it, alongside a rise in the tax-free exemption on bank interest and a freeze on property tax tariffs for the hostelry, retail and warehousing sectors.
Those reductions are set to be more than offset by revenue-raising measures elsewhere in the Budget, including the continued withdrawal of mortgage interest relief and higher duties on tobacco, alcohol, fuel and vaping products.
You need to be logged in to comment.