The way a donation is made can affect both the charity’s receipt and the donor’s tax relief. Check that the charity and the gift qualify before making a claim.
Gift Aid
With a valid declaration, a charity can reclaim basic-rate tax on an eligible donation. The donor must have paid enough qualifying UK tax to cover the amount reclaimed across their donations.
Further personal relief may be available depending on the donor’s tax position. Keep records of the donations and check whether an additional claim is needed.
Benefits received in return for a donation can affect eligibility. Use the official Gift Aid guidance for current conditions and limits.
Payroll Giving
Where the employer operates a scheme, donations can be deducted through payroll before Income Tax. National Insurance is not reduced in the same way.
The employer sends the donations through an approved agency. Gift Aid is not claimed again on the same donation. See Payroll Giving for the arrangements.
Gifts of assets
Qualifying gifts of shares, land or property can have their own Income Tax and Capital Gains Tax treatment. The type of asset, valuation and terms of the gift matter.
Keep evidence of the transfer and any costs or benefits connected with it. Review the tax position before transferring an asset, particularly where it has increased in value or the donor will continue to use it.
We can help compare the available methods and prepare the information needed for a relief claim.