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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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