Ceredigion Association of Voluntary Organisations

Charity tax changes and additional funding for Wales in Autumn Budget

red budget box

The Chancellor of the Exchequer has announced his autumn budget.

Announcements included:

  • A rise in the upper limit for trading that charities can carry out without paying tax will be introduced, from £5,000 to £8,000 where turnover is under £20,000, and from £50,000 to £80,000 where turnover is more than £200,000.
  • There will be an increase from £20 to £30 in the individual donation limit for gifts made under the Gift Aid Small Donations Scheme. It is estimated this will cost the public purse £5m a year from April 2019, when it is due to be introduced.
  • Welsh Government will receive £550 million extra funding over the next three years. There will also be £120 million towards the North Wales City Deal – however, this project totals £700 million, so will need match funding from Welsh Government, private enterprise and elsewhere.
  • The National Living Wage will increase from £7.83 per hour to £8.21 per hour.
  • £1 billion to go towards top-up payments for those moving onto Universal Credit from other benefits. Work allowances within Universal Credit will increase by £1,000 per year.
  • £10 million to the Armed Forces Covenant Fund Trust to support veterans with mental health needs.
  • Up to £8m in funding towards the cost of repairs and alterations to village halls and facilities run by miners’ welfare and armed forces organisations, given in lieu of VAT costs.
  • £15 million to charities and others to distribute food that would otherwise be wasted
  • £2 billion for Brexit preparation, to be distributed around various departments, in addition to the £2.2 billion already confirmed.
  • England will get extra money for schools and social care – as a consequence, Wales should receive some further funding to spend as it sees fit.



Ruth Marks, WCVA Chief Executive, said: ‘Any additional funding available to Wales is welcome. We urge that third sector organisations supplying vital public services across the country are further resourced to help them to continue their outstanding work. However, we are disappointed that, despite the launch this summer of the Civil Society Strategy, with its vision for supporting the third sector and pledge to hear its voice, that the opportunity to emphasise the vital contribution that charities, voluntary groups and social enterprises make to civil society across the UK was not taken.’

Charity Tax Group Chairman John Hemming said: ‘The Government needs to go much further in committing to a wider strategic review of how the VAT system affects charities.’

Stuart Ropke, Chief Executive of Community Housing Cymru, said: ‘The new capital funding made available for Wales as a result of today’s budget presents an opportunity for Welsh Government to maintain consistent investment in building new affordable homes over the coming years.’