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Gifts by individual were not qualifying donations and tax relief was recoverable from charity

By Mark McLaughlin, February 2025

An individual’s gifts were not ‘qualifying donations’ as three out of six relevant conditions were not met, so no higher rate income tax relief was available to him and the charity could not have the benefit of the basic rate income tax relief that would have been attached had the gifts been qualifying donations. 

On 3 March 2020, HM Revenue and Customs (HMRC) issued to the first appellant (JAH) discovery assessments for the tax years 2015/16 and 2016/17, which related to HMRC’s decision to require repayment of gift aid relief at the higher rate of income tax on gifts to a charitable trust (KEH). In addition, on 3 January 2023, HMRC issued to KEH (the second appellant) closure notices increasing KEH’s chargeability to income tax for 2016/17 and 2017/18 (although both closure notices were excessive and HMRC asked the First-tier Tribunal (FTT) to vary them).  

The appellants submitted that: (1) the gifts made

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