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Charity Taxes

The Government has announced it will introduce a package of measures from April 2019 designed to reduce administrative burdens on charities. These will include:

increasing the upper limit for trading that charities can carry out without incurring a tax liability from £5,000 to £8,000 where turnover is under £20,000, and from £50,000 to £80,000 where turnover exceeds £200,000 (changes will have effect on and after 6 April 2019 for unincorporated charities and from 1 April 2019 for incorporated charities); allowing charity shops using the Retail Gift Aid Scheme to send letters to donors every three years when their goods raise less than £20 a year, rather than every tax year;and increasing the individual donation limit under the Gift Aid Small Donations Scheme to £30, which applies to small collections where it is impractical to obtain a Gift Aid declaration (this change will be made by Regulations if Parliamentary time permits).

Pensions & Savings Tax


Lifetime allowance

The pensions lifetime allowance will increase in line with CPI from £1,030,000 in 2018–19 to £1,055,000 in 2019–20.

Ban on cold calling in relation to pensions

The consultation outcome on the ban on cold calling in relation to pensions was announced at Budget 2018. It is proposed that regulations will be laid in autumn 2018 to amend the Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2003/2426) to ban calls for direct marketing in relation to pension schemes.This measure is designed to tackle pension scams that often lead to savers losing their entire pension fund. Once the regulations come into force, the government plans to proactively communicate the ban and the Information Commissioner’s Office (ICO) will publish guidance for the pensions industry.

Starting rate for savings

It was announced at Budget 2018 that the band for the 0% starting rate for savings would remain unchanged at £5,000 for 2019–20.

Individual Savings Account (ISA) subscription limits

The adult ISA subscription limit remains unchanged at £20,000 for 2019–20. The annual subscription limit for Junior ISAs will increase in line with CPI from £4,260 in 2018–19 to £4,368 in 2019–20.

Child Trust Funds

The annual subscription limit for Child Trust Funds will increase in line with CPI from £4,260 in 2018–19 to £4,368 in 2019–20.Budget 2018 also announced a consultation to take place in 2019 on draft regulations to ensure that Child Trust Fund accounts retain their tax-free status after maturity.

Social Investment Tax Relief review

A review of Social Investment Tax Relief was announced at Autumn Statement 2016 and a call for evidence will be published early in 2019. At Budget 2018, it was stated that this review will consider why the take up for the scheme is lower than anticipated as well as the design and targeting of the relief.

Enterprise Investment Scheme (EIS) knowledge-intensive fund structure

Changes to the EIS rules for approved funds were the subject of a policy consultation in spring 2018. The government plans to introduce changes to EIS approved funds in Finance Bill 2019–20 with effect from 6 April 2020 to:require approved funds to focus on investments in knowledge-intensive companies;give funds a longer period over which to invest fund capital; and allow investors in approved funds to set their income tax relief against liabilities in the year before the fund closes.It is proposed that draft legislation will be published for consultation in summer 2019.

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