Are there any tax breaks for Charitable Giving

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.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

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