Charitable Giving

Charitable Giving

If you are looking at Gift Aid or planning your finances, please feel free to contact us.  We can discuss your specific circumstances to help you plan tax efficiently.

Gift Aid

1. Donors, who are higher and/or additional rate taxpayers, can claim tax relief on the difference between the higher/additional rate tax and basic rate on the grossed up donations under Gift Aid. Basic rate tax is treated as having been deducted, so you must pay enough tax for the year to cover the tax withheld from your Gift Aid payment.

2. Special tax reliefs apply to gifts to charities of certain types of shares and securities, or land and buildings.

3. Individuals have the opportunity to make a claim for charitable donations made in one tax year to be treated as if they had been made in the previous tax year. For example, a request could be made for Gift Aid payments made between 6 April 2017 and the date that the 2017 return is filed to be treated as if they were made in the year to 5 April 2017. This would mean that a payment could rank for higher rate tax relief for 2016/17, even if the donor is liable at basic rate only in 2017/18. The request would normally be made by completing the relevant box in the 2017 tax return, and the opportunity to carry back donations is lost once that return has been filed (provided this is no later than 31 October 2017 or 31 January 2018, as appropriate). It is not possible to amend the 2017 tax return in order to carry back a donation.

Give As You Earn

1. Employees may authorise participating employers to deduct donations from their gross salary for forwarding to their nominated charities.

2. Employees receive tax relief in full on their donations.

Please contact us for further information.

Disclaimer:  This App and its contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this App is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this App.