BUSINESS
TIPS
Tax-efficient giving is a smart way
to maximise your charitable impact
while minimising your tax burden.
Here are some tips for UK taxpayers:
1
Gift Aid
The Basics: This is the most common tax
break. When you donate, the charity can
reclaim the basic rate tax you've already
paid on that money. This means a £100
donation effectively costs you only £80
Higher-rate taxpayers: You can claim the
difference between the higher rate you
pay and the basic rate on your donation
through your Self Assessment tax return
2
Payroll Giving
Donate through your salary: Your
donation is taken from your gross salary
before tax is deducted, meaning you get
immediate tax relief and it costs you less
Convenient and regular: This sets
up a regular pattern of giving and
is easy to manage
3
Giving in your will
Reduce inheritance tax: Leaving
money to charity in your will can either
reduce the value of your estate before
inheritance tax is calculated or reduce
your inheritance tax rate
Lasting legacy: This ensures your support
for causes you care about continues even
after you're gone
4
Giving shares
or property
Avoid capital gains tax: You can donate
shares or property to charity without
paying capital gains tax on any increase
in their value.
Potentially higher tax relief: You may
be able to claim income tax relief
on the value of the gift, depending
on your circumstances.
5
Charitable trusts
More control and flexibility: Setting
up a trust can provide more control
over how your donations are used and
allow you to benefit from tax relief.
Different types: There are various types
of charitable trusts, each with its own
tax implications, so it's crucial to seek
professional advice.
6
Keep records
Always keep records of your donations
and Gift Aid declarations
If you need any help
with anything in this document
please get in touch.
ENTRANCINGLY CLEAR
