Chancellor Gordon Brown has given museums and historic sites a reprieve with regards to the Gift Aid scheme loophole that the Treasury decided to close earlier this year.

A new scheme will now be introduced instead in April 2006.

The government had announced plans to remove the freedom for cultural attractions to attract Gift Aid on visitor admissions in its Pre-Budget Report.

Gift Aid allows visitors to make a donation instead of paying admission fees. Charities can then reclaim tax on these donations from UK taxpayers.

While the government said that the abolishment of the Gift Aid scheme would ‘close the loophole’, various independent organisations, including the Association of Independent Museums (AIM), called the removal of Gift Aid both mean-spirited and short-sighted.

AIM had said that charitable trusts allover the UK were determined that no loophole existed and that the Inland Revenue had supported their Gift Aid projects. It had been estimated that around £10m is raised annually through Gift Aid by cultural charities.

AIM’s vice chair, Bill Ferris, said: “It’s good news that we’ve managed to keep the existing system for two years because the original idea was that it ended almost a year ago, so that has been extremely valuable.

“We’re pleased the Treasury has conceded that charity museums should benefit from Gift Aid and that they’ve introduced a workable system.

“There’s no doubt that it won’t be as easy to operate and that there will be a reduction in income as a result but, naturally, AIM, who fought hard on this issue on behalf of its members, is pleased that we’ve managed to salvage something positive.” Details: www.museums.org.uk