HMRC updated guidance on Gift Aid rights of admission and family members

A right of admission granted by a charity to view property preserved, maintained, kept or created by a charity for its charitable purposes is not treated as a benefit associated with a gift for Gift Aid purposes provided the admission provides the donor with an annual right of admission or the amount of the gift is greater by at least 10% than the amount a member of the public would have to pay.

The right of admission can apply to the donor and one or more members of their family, whether that right of admission is exercised by all of the family members at the same time.

HMRC has recently updated its guidance on who is to be regarded as a family member for this purpose. The new guidance reads:

“By definition a family is a group of one or more parents and their children living together as a unit. An example could be a couple and their minor children, or everyone living in the same home — which might include adult children and grandparents. Either is acceptable for Gift Aid purposes.”

The old guidance was:

“Typically, a family ticket will be available to a couple and their minor children or to everyone living in the same home – which might include adult children and grandparents.”

The new guidance makes it clearer that a family group for this purpose is not confined to a couple and their minor children. Subject to the requirement that the individuals should be living together in the same home, it remains up to each charity to decide how many family members and what familial relationships to include if it wants to offer family admissions.

HMRC does not expect charities to make detailed identity or relationship checks on individuals. However, HMRC points out that it’s in the charity’s interests to monitor donations for family admissions and that HMRC may query claims for Gift Aid on unusual groups if it does an audit. Where family admissions are offered, HMRC recommends that charities draw attention to the definition of family member in literature and signage.

More guidance is available on the government website.

If you have any queries regarding Gift Aid, please get in touch with David Humphrys.