Prices for entry to Stonehenge Fernando Losada Rodríguez

Charities such as National Trust, which operates Stonehenge, had been concerned that they may lose out on being able to claim gift aid on membership subscriptions

Photo: Fernando Losada Rodríguez

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Government expected to amend gift aid legislation

Charities Finance Group says the government will amend gift aid legislation so charities can continue to claim the tax relief after a law protecting consumers’ rights to cancel subscriptions comes into effect in 2026.

Patrick Jowett
2 min read

Legislation included in the Digital Markets, Competition and Consumers (DMCC) Act 2024, which could see charities lose out on being able to claim gift aid on membership subscriptions, is expected to be amended by government before it comes into force.

The act, which gained royal assent in May, will bring consumers new protections regarding cancellation rights for any subscription contracts they enter into, including charity membership subscriptions.

But these new protections, which come into effect in spring 2026, have raised concerns in the charity sector in terms of their eligibility for gift aid, a tax relief which allows them to claim 25p for every £1 donated.

The DMCC Act makes provisions for the refund of subscription payments during a statutory cooling-off period. This contradicts one of the statutory conditions of gift aid, which stipulates the gift cannot be “subject to a condition as to repayment”. This would mean charities would not be able to claim gift aid on membership subscriptions.

However, a presentation by Charities Finance Group’s head of policy, Richard Sagar, at the Healthcare Financial Management Association conference earlier this month, said the “government intends to amend gift aid legislation by statutory instrument so that charities can continue to claim gift aid while complying with the new protections for consumers under the bill”.

Sagar’s presentation said a technical consultation is planned “on how to achieve this” before the end of 2025. Arts Professional has contacted the charity for further clarification.

Last spring, the former Conservative government committed to amending the legislation to ensure charities could continue to claim gift aid.

The commitment came following a debate in the House of Lords in March over the policy.

During the debate, Lord Neil Mendoza said the English Heritage Trust has revenue of £130m a year, of which £48m – equivalent to almost 40% – comes from membership income.

“If you fiddle with that, it could be very significant,” Mendoza said. “If it makes a surplus, it all goes back into the restoration, maintenance and improvement of the national heritage collection.”