Tax-efficient Giving and Gift Aid
You can use Gift Aid to boost the value of your donation by as much as 25p for every £1 that you give. Gift Aid allows us to recover the basic rate income tax paid on any gift. For example, if you give £10 to a charity and you are a basic-rate taxpayer (20 per cent), you will have paid £2.50 in tax on the gross donation (to take home £10, you will have earned £12.50 before tax). Charities are able to reclaim this £2.50 from HMRC.
Gift Aid can be applied to any UK, EU, Norwegian or Icelandic charity that is registered with HMRC. You can qualify for this as long as you are a UK taxpayer and have paid enough UK income or capital gains tax to cover all of your charitable donations. Please note that other taxes, such as council tax and VAT, do not qualify.
If you’d like your donation to be treated as Gift Aid, you'll need to sign the Gift Aid Declaration, which is part of our donation form.
Gifts of land and property
Another tax-effective way you can give is by donating land or buildings – either in their entirety or a proportion of the holding – to charity. There could be generous Income and capital gains tax relief available to you if you give in this way to a UK, EU, Norwegian or Icelandic charity registered with HMRC.
Any land or buildings are eligible for this relief as long as the whole of your interest in the property is handed over to the charity. So, you couldn't donate your family home, claim the tax relief and continue to live in it – you'd be retaining an interest in the property.
The relief works in much the same way as gifts of shares. You'll receive tax relief for the market value of your property as a deduction from your income tax liability – for the tax year in which the gift is made. Additionally, you could be exempt from capital gains tax on the appreciation of the property value that you'd have to pay if you'd simply sold the property.
For more information, visit the Institute of Fundraising tax effective giving website.