Small Charitable Donations and Childcare Payments Bill

Explanatory Notes

Overview of the Bill

1 The Small Charitable Donations and Childcare Payments Bill makes a number of amendments to the Small Charitable Donations Act 2012. The changes seek to ensure that the Gift Aid Small Donations Scheme operates effectively and flexibly for the greatest number of charities and Community Amateur Sports Clubs (CASCs). The Bill also makes minor and technical changes to the Tax-Free Childcare scheme with the aim of improving parents' experience.

2 The reforms to the Gift Aid Small Donations Scheme are intended to simplify and increase access to the scheme, particularly for smaller and newer charities. This is achieved by:

removing a number of eligibility criteria to allow more smaller and newer charities to benefit sooner;

reforming the community buildings rules to allow more charities to benefit from the important work they carry out in their local communities;

simplifying the rules specifying the total top-up payment charities and CASCs are entitled to claim - ensuring fairness and parity of treatment between charities that carry out similar activities but are structured in different ways;

ensuring the scheme continues to reflect the realities of modern fundraising by allowing contactless donations to be eligible.


Prepared 16th November 2016