A PACKAGE of measures has been announced which are designed to boost charitable giving, writes Michael Proudfoot, Kendal-based partner at chartered accountants Lonsdale and Partners, in his latest monthly article for Business Gazette.

Gift Aid - the £250 minimum limit for Gift Aid donations has now been abolished.

The scheme now applies to any donation large or small, whether regular or one-off.

Individuals are still deemed to pay donations net of basic rate tax which the charity can, as before, claim back from the Inland Revenue - albeit now at the slightly lower rate of 22 per cent.

Companies on the other hand now pay such donations gross - charities are no longer able to reclaim tax on company donations.

Non-taxpayers - the advice is straightforward.

Gift Aid is not an appropriate method for non-taxpayers to give money to charity, just as deeds of covenant were inappropriate for those who were not taxpayers.

If a non-taxpayer makes a Gift Aid declaration, they may inadvertently incur a tax liability.

Payroll giving - the £1,200 annual ceiling on the amount an employee can give under the payroll giving scheme has been abolished.

There is no longer any upper limit.

The government, furthermore, will pay a 10 per cent supplement on all donations made under the scheme for three years from April 6, 2000.

Gifts of investments - tax relief for both individuals and companies is now available on gifts to charities of listed shares and securities, unit trusts, shares in open-ended investment companies and interests in offshore funds.

Charitable giving - possible action points:

l Ensure all corporate Gift Aid donations are now paid gross.

l For employees, consider using payroll giving rather than Gift Aid - the 10 per cent government supplement will then be available to the charity.

l Consider giving shares (or other investments) to a charity rather than selling the shares are giving cash - the gift is likely to be more tax efficient.