The Institute of Fundraising has said it is delighted that the 2008 Budget announcement in relation to transitional relief has now received Royal Assent.

This will mean that UK charities will start to receive transitional relief payments on Gift Aid claims made from August 1, with claims made between April 6 and August 1, 2008 receiving backdated transitional relief payments in due course.

Gift Aid transitional relief was announced in the 2008 Budget to ensure that the value of Gift Aid remained at 28p for every pound, following the announcement in the 2007 Budget that there would be a reduction in the basic rate of income tax that came into force on April 6 2008.

Without transitional relief, the value of Gift Aid for every pound drops to 25p.

Megan Pacey, director of Policy and Campaigns at the Institute of Fundraising, said: “The Institute is delighted that the concern expressed by fundraising organisations in the Gift Aid consultation last summer led to a system of transitional relief being granted for a period of three years.

“We are delighted that charities are able to continue claiming Gift Aid at the rate of 28p in the pound. It’s encouraging to note that Government have moved quickly on the proposals made by the Institute and other sector bodies that contributed to the review of Gift Aid.

“The Institute is looking forward to engaging with HM Treasury as the work to inform developments for Gift Aid in relation to Higher Rate Tax Payers drives forward over the Autumn.”