To help reduce administrative burdens on charities, if a charity event is cancelled due to coronavirus (COVID-19), HMRC will accept that where a person due a refund decides to donate this to a charity, the requirements of S416 ITA07 are met provided:
- the individual
- does not receive a benefit as a result of their donation
- agrees that the cost of their ticket becomes a donation
- completes a Gift Aid declaration
- the charity keeps an audit trail, including a copy of the agreement from an individual agreeing to the donation of the cost of the ticket
The charity no longer has to physically refund the ticket price for the individual to re-donate.