Tax experts from across the third sector have agreed to set up a working party to consider the impact of Gift Aid.

At a meeting attended by representatives of the major management and financial umbrella groups, it was decided that a working party should be established in order to consider the findings of the forthcoming Gift Aid consultation.

The group expressed concern at the potential loss of £100 million to the sector as a result of the cut in the basic rate of income tax announced by Chancellor Gordon Brown in the Budget earlier this year. It also agreed that the administrative burden of Gift Aid is costly to charities.

The group has called for the government’s consultation period on the issue to be adequate enough to allow volunteer-led charities to respond, especially as the summer holiday season is to begin shortly.

The meeting was attended by figures from NCVO, Acevo, the Institute of Fundraising, CFDG, the Charity Tax Group and the Charity Law Association.