HMRC is to update its guidance on the Gift Aid Small Donations Scheme in relation to mergers of charities and Community Amateur Sports Clubs (CASCs) with other charities or CASCs, to highlight the time limits for notification.

Current guidance does not include specific reference to the time limits for new charities and CASCs to notify HMRC if they want to apply for confirmation that they may take over the claims history of an old charity or CASC after merger.

The new charity or CASC must make an application either at least 60 days before its first Gift Aid claim or within 90 days after the date when the new charity or CASC began to carry on the activities of the relevant old charity or CASC, whichever falls earlier.

HMRC will be updating its guidance shortly to ensure that these time limits are clear. As some charities and CASCs may have been relying solely on guidance, HMRC has said it is prepared to accept late applications relating to mergers made on or before 30 November 2013 provided the application is received by 28 February 2014.