Tax Efficient Giving

Almost 70% of the population in the UK give to charity, but only one in three do so tax-efficiently. As a result donors and charities alike are missing out on millions of pounds in very generous tax reliefs.

Gift Aid your donation and boost its value by 25%
You just need to give a simple Gift Aid declaration to the charity and pay enough tax (income/capital gains) in the current financial year to cover the amount reclaimed. The charity then claims back the basic rate income tax you have already paid. If you are a higher rate taxpayer, you can claim a personal benefit worth 23 pence for every £1 donated. You can either claim this as a personal benefit or choose to give it to charity.

You give £1 – the charity gets £1.25
You give £100 – the charity gets £125.00

Payroll Giving
If you give through your payroll, your gift is made from your salary before it is taxed. So a monthly gift of £20 will currently generate £25 and a higher rate tax payer more. Anyone who is paid through PAYE can use payroll giving to donate to charity. However, your employer must have a payroll giving scheme in place for you and your colleagues to make donations in this way. There is a grant available to companies to put the scheme in place to enable their staff to contribute in this tax-efficient way.

  • 1 – 199 employees £300
  • 200 – 249 employees £400
  • 250 – 499 employees £500

Legacies
Charitable legacies are donations made as part of your will. They are paid before inheritance tax is deducted, reducing the total amount of tax paid on the estate. Legacies can be set up through a solicitor or with CAF (Charities Aid Foundation).
Tel. 01732 520 000

Share Giving
Giving shares and securities to charity is a great way of unlocking capital and passing it on to good causes. Since April 2000, gifts of shares have been both eligible for full personal income tax relief and exempt form capital gains tax. If you are a basic rate taxpayer, a gift of £1,000 listed shares could reduce your income tax bill by £220 and by £400 if you are a higher.

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