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Charitable Giving
Gift Aid
- Individuals are able to claim higher rate relief on cash gifts and
payments to charities 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 witheld from your Gift Aid payment.
- Special tax reliefs apply to gifts to charities of certain types of
shares and securities, or land and buildings.
- Self-assessment now allows individuals to divert some or all of any tax
repayment due to them for the year to a charity of their choosing, and to opt
for this to be treated as a Gift Aid payment, both via entries on the tax
return.
- Individuals also now have the option to make a claim for a charitable
donation made in one tax year to be treated as if it had been made in the
previous tax year, so long as the claim is made by inclusion on the Tax Return
for the later year. Provided the later year's Return is filed in time, this
would mean that a payment could rank for higher rate tax relief for the earlier
year, even if the donor is liable at basic rate, only, in the tax year in which
the payment is made.
Give As You Earn
- Employees may authorise participating employers to deduct donations
from their gross salary for forwarding to their nominated charities.
- Employees receive tax relief in full on their donations.
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