Overview

This bill amends the Small Charitable Donations Act 2012 and the Childcare Payments Act 2014. Key changes include updating the definition of "small donation" to include contactless payments, altering rules around charitable donations made in community buildings, and modifying aspects of childcare payment schemes.

Description

Small Charitable Donations

The bill modifies the definition of "eligible charity" and "small donation" within the Small Charitable Donations Act 2012. "Small donation" now includes contactless payments, alongside cash payments. Rules concerning charities operating in multiple community buildings are revised, with a new system determining the maximum amount of small donations a charity can receive and claim tax relief on. This depends on the location and number of buildings used and has an £8,000 limit.

Childcare Payments

Amendments to the Childcare Payments Act 2014 extend the entitlement period for childcare payments from one to two months. The bill also allows for regulations to specify the application process for reviewing decisions and claiming payments.

Government Spending

The bill is likely to have a minimal impact on government spending. While it alters the rules for claiming tax relief on small charitable donations, the overall effect on government revenue is expected to be negligible. No specific figures regarding the financial implications are provided in the bill text.

Groups Affected

• Charities: The changes to the definition of eligible charities and small donations, as well as the new rules for charities operating in multiple community buildings, will directly affect how charities can claim tax relief on small donations.
• Individuals making small charitable donations: The inclusion of contactless payments expands the payment methods eligible for tax relief.
• Parents claiming childcare payments: The extension of the entitlement period will benefit parents who receive childcare support.
• HMRC: HMRC will be responsible for implementing the changes and processing related claims.

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