The Summer Budget delivered by the Chancellor on 8th July 2015 was light on charity proposals. The charity-specific announcements included:

  • An increase in the National Insurance Contributions Employment Allowance of £1,000 will take effect from April 2016. This takes the NICs Employment Allowance up from £2,000 to £3,000. The intention is to help to support small businesses and charities to take on employees. Companies where the director is the sole employee will no longer be able to claim Employment Allowance, but this is unlikely to impact on charities given that most corporate charities have three or more charity trustees/directors and only a minority (if any) of those trustees also serve as employees.

  • £70 million of banking fines over the next five years will be allocated in the form of grants to support military charities and other good causes. This is a continuation of earlier government decisions to direct banking fines to charitable causes.

  • An “anomaly” in Research & Development Expenditure Credit (RDEC) will be fixed with effect from 1st August 2015, meaning that universities and charities will no longer be able to claim RDEC. The tax credit had been introduced in 2013 with a view to encouraging more research and development (R&D) by large companies. A number of claims for RDEC have been made by universities, but the Government has clarified that universities and other charities were not intended to benefit. Claims relating to expenditure on R&D incurred by universities or charities on or after 1st August 2015 will no longer be permitted. It is thought that only a few dozen universities and charities will be affected.

For further advice on any aspect of the 2015 UK budget in relation to your charity or charitable giving, contact us by email at or follow us on Twitter @tc_charities.