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TAX-EFFICIENT GIVING
Don't give it to the Tax man!
Charitable giving – tax efficient options
Using
Gift Aid
•
50% of the donations we received last year were gift-aided.
• Gift Aid is worth approximately 28% of the value of any donation made by
a tax-payer.
• Every year we claim more than £30,000 in Gift Aid from the Inland
Revenue.
• We cannot claim Gift Aid on payments for raffle tickets, concert tickets
or Christmas cards.
Tax
Relief for higher-rate taxpayers
If a
donor pays tax at the higher rate of income tax, they can also claim tax
relief for themselves of 18% of the gross donation.
|
Example |
|
|
Higher-rate taxpayer donates |
£100 |
|
Hospice claims basic rate 22% |
£28.20 |
|
Hospice receives |
£128.20 |
Donor claims higher rate
£128.20 x (40%-22%) 18% |
£23.08 |
Now, when
using a self-assessment form, a donor can choose to donate this or any
other repayment due to them straight to the Hospice, by using our Inland
Revenue reference number VAF65VG on their form.
To
download a Phyllis Tuckwell Hospice Gift Aid Declaration in PDF format
please click here
To
download a Phyllis Tuckwell Hospice Gift Aid Declaration "in memory of
someone" in PDF format
please click here
click here to download Adobe Acrobat
Reader FREE
Charity Bank
A
healthy return for you and the Phyllis Tuckwell Hospice
Charity Bank’s Just Interest accounts are all within the Government’s
recently launched Community Investment Tax Relief (CITR) scheme so they
attract generous tax relief. If you make the appropriate selection, the
net interest is donated to the Phyllis Tuckwell Hospice to help us
maintain and extend our services. Now you can make your money work harder
and tax-efficiently - for you and for the Hospice.
• You earn
the tax relief (currently worth 25% over 5 years)
• Phyllis Tuckwell Hospice receives the interest
• And communities benefit as a result
Donate
Shares
In
April 2000, a significant new tax incentive was introduced to encourage
people to donate shares to charity.
In most
cases, when donors give certain shares to a UK charity or sell them to a
charity at a price below the market value, they can now get relief against
their personal income tax bill. This is in addition to exemption from
capital gains tax on the gains they may have made on those shares. With
the right timing, this can amount to a substantial tax break for donors.
Corporation Tax Relief
Businesses can get tax relief when they give to the Hospice. Their gifts
may be tax deductible if they are
• donations
• gifts-in-kind
• staff provided to work for the Hospice
CAF
America
For
our supporters in the
USA,
we have now been registered with CAF America to enable them to donate
tax-efficiently to the Hospice.
To
download a CAF America form to donate to Phyllis Tuckwell Hospice
please click here
A Gift
in Your Will
Leaving a gift to charity is particularly attractive for those whose
assets are large enough to attract inheritance tax upon their death. This
is because charitable donations in a will are completely free of
inheritance tax.
|
Example |
|
|
Mr
Brown died in May 2003. He left £40,000 to his favourite charity and
the rest of his estate to his daughter. |
|
Total
value of estate |
£700,000 |
|
Less |
|
|
bills
and funeral expenses |
£5,000 |
|
legacy to charity |
£40,000 |
|
Net
value of estate |
£655,000 |
|
Inheritance tax threshold |
£255,000 |
|
Balance of estate chargeable |
£400,000 |
|
Inheritance tax @ 40% |
£160,000 |
|
Without the legacy to charity, further inheritance tax of £16,000
would be payable. |
Information
on this page is taken from “Make giving go further” by the Giving
Campaign, pub. 2003.
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