A consultation is currently running in relation to the implementation of the new subscription contracts regime. When it comes into force (expected to be Spring 2026), the Digital Markets, Competition and Consumers Act 2024 will give consumers of subscription products a 14-day cooling off period on initial purchase and on each renewal.

The definition of “subscription” is broad and at present charity memberships would be affected. It is important that charities consider the necessary changes to their terms and conditions, as well as accounting implications of this.

When the Act was passed, a number of organisations including the Charity Tax Group raised the potential impact on charities who are currently able to claim Gift Aid on subscriptions. Under the new powers introduced by the Act, this would introduce a ‘condition as to repayment’ which is not permitted under the Gift Aid rules.

The Charity Tax Group have confirmed that in their discussions with Government officials that charities would not be exempt from the rules, but were assured that there was no intention to impact on charities’ ability to claim Gift Aid on subscriptions. The Government have stated an intention to consult on updating the Gift Aid regulations during 2025 in order to ensure that charities can continue to claim Gift Aid for subscription payments, where a statutory cooling off period is in place. Charities that are potentially impacted will need to be aware of the outcome of this consultation, as it may require changes to be made to the Gift Aid process and the timing of claims in order to remain compliant.

Further details can be found here.

The closing date for responses is 10 February 2025.