The short version: When you give money to charity, you might be able to claim tax relief on it. The charity can also claim back tax through Gift Aid, making your donation worth more.
How Gift Aid works
If you tick the Gift Aid box when donating, the charity can claim basic rate tax on top of your donation. So your gift goes further without costing you anything extra.
If you’re a higher rate taxpayer, you can claim back the difference between what you pay and the basic rate. You do this through your Self Assessment tax return or by asking HMRC to adjust your tax code.
Donating assets
If you donate land, property, or shares to charity, you can claim both Income Tax relief and Capital Gains Tax relief. Worth knowing if you’re looking to give something substantial.
Leaving to charity in your will
If you leave money to charity in your will, that amount is taken off your estate before Inheritance Tax is calculated. Leave enough to charity and the rest of your estate could qualify for a reduced IHT rate too.
Want to make sure you’re getting all the tax relief you’re entitled to? Check with us that you’re claiming everything.
