GIFT AID FOR HIGHER RATE TAXPAYERS
Gift Aid is one of the most frequently used and easily understood ways to benefit UK registered charities and community amateur sports clubs (CASCs), which can claim a further £25p from the government for each £1 donation they receive.
As a higher rate tax payer, you’ll also benefit. Your basic and higher rate tax bands are increased by the same amount as your donation, so more of your income is taxed at the lower rate. If you earn over £100,000 p.a., your tax-free personal allowance reduces by £1 for every £2 you earn above £100,000, but making Gift Aid donations extend it by £1 for every £2 of gross donation, again providing a tax saving.
We can also advise on the optimum Income Tax reliefs available on lifetime charitable donations via the Gift Aid scheme, ensuring maximum benefit to both you and your chosen charity.