There are a range of tax reliefs available for donating to registered charities.
Gift Aid -this scheme is well-known and applies where gifts are made by UK taxpayers. The donor must complete a Gift Aid declaration confirming that the gift is to be treated as a Gift Aid donation.
The gift is treated as being made net of the basic rate of income tax and charities can reclaim the basic income tax from HMRC. If the individual pays tax above the basic rate they can claim the difference between the rate they pay and basic rate on their donation via their Self Assessment tax return.
Payroll Giving – Some employers or pension providers provide a scheme which enables individuals to donate straight from wages or pension. The donations are deducted from gross pay and as a result tax relief is given at source.
Donating land, property or shares – If you donate these to charity you can get tax relief on both income tax and capital gains tax. This includes selling them for less than their market value. You must keep records of the donation to show that you’ve made the gift or sale and that the charity has accepted it.
Relief is given on the market value at the time they are given or sold to the charity, plus costs of disposal, less any consideration received.
Reduced rate of inheritance tax (IHT) – The IHT rate is reduced from 40% to 36% for estates of individuals who die on or after 6 April 2012, who leave at least 10% of their taxable estate to charity.
27 November 2019
HMRC recently published new guidance on the structures and buildings allowance (SBA) following changes to the rules. This includes important information about how to claim it.
11 November 2019
Even in this digital age some businesses remain heavily reliant on cash transactions. HMRC views these as high risk and as a result targets cash businesses with VAT enquiries, using special techniques to justify investigating them.
6 November 2019
The first big deadline for MTDfV is history and whilst there was a fairly high failure rate, it was not as bad as originally feared.
29 October 2019
BPR shelters the value of your business from the HMRC. The trouble is though, when you retire from your unincorporated business, the relief disappears immediately. CHW explain how you can preserve it.