Charitable Giving Services

For many people, wealth is not an end in itself; it provides the means to make a positive contribution to society. The right planning can enhance the impact of your charitable donations and provide tax relief for you.

Jill Walker

Private Client Partner

Contact Jill Meet the team

Who we can help

ENTREPRENEURS
HIGH NET WORTH INDIVIDUALS
INTERNATIONAL PRIVATE CLIENTS

How we can help

BENEFITTING OTHERS & YOURSELF

Meet our team

There’s an increasing emphasis on ‘wealth for good’ amongst those fortunate enough to have the means and the desire to support good causes. You may already know which charity or organisation you want to benefit or perhaps you need help deciding, in which case we can suggest how to choose based on an organisation’s Ethical, Social and Governance (ESG) criteria or through other research.

Equally important, we’ll also advise on the tax implications of charitable giving, both to ensure your chosen charity can realise the maximum benefits from your generosity and so you can also benefit from the tax advantages designed to encourage giving. These relate to tax relief you can claim during your lifetime and by making charitable legacy provisions in your Will to mitigating Inheritance Tax for your family.

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.

Learn more about Gift Aid

I contemplated transferring my business to a limited company and I knew I could rely on AAB to make the process as straightforward as possible whilst providing the accounts and tax advice to enable me to make the right decision.
Colin Brown
I wouldn’t hesitate in recommending AAB to anyone else who, like us, may be struggling to get the expert advice required, especially when it involves coming back to the UK and managing tax aspects on overseas income and assets.
John Bannerman
The efforts of the team ensured that timely planning could be undertaken to the overall benefit of my family. AAB clearly demonstrated their expertise here and proved why it is always worth getting the best professionals on the job!
Keith Fletcher
AAB recently helped my husband and I with appeals to both HMRC and the Norwegian tax authorities. They constantly kept us up to date with progress and were persistent in chasing up both authorities for refunds for us.
Melanie McEvoy

REDUCING YOUR INHERITANCE TAX

As part of our Inheritance Tax (IHT) planning service, we’ll work alongside your legal advisor to provide guidance on how best to draft your Will to leave a legacy to charity, giving you assurance that your nominated charity will benefit at the same time as mitigating your family’s exposure to tax on your death.

The amount of your donation will be deducted from your estate before IHT is calculated, reducing the amount of IHT payable. If your legacy leaves at least 10% of your net estate to charity, this lowers the IHT rate and further reduces the tax bill. However, it’s worth bearing in mind that your donation will also reduce the remaining value of your estate, so whilst less money will be taken by HMRC, there will be less to distribute to your beneficiaries.

Speak to us about Inheritance Tax

SET UP YOUR OWN CHARITABLE FOUNDATION OR TRUST

We can also advise you on establishing a Charitable Foundation or Trust for long-term giving and tax planning purposes. This allows you to fulfil your personal philanthropic wishes, as you have control of the charity’s constitution and how the funds you provide will be used. It can also be useful as part of your succession planning, to help your children understand what’s involved in running charitable funds.

The actual vehicle you choose will depend on what you want to achieve and a range of other factors including whether it will employ people, hold property, make contracts, etc. The options available are:

Charitable Trust.
Charitable company limited by guarantee.
Charitable Incorporated Organisation.

Together we’ll discuss your aims and how you will fund your charity and its running costs, to work out the best vehicle for you.

Learn more about setting up a Foundation or Trust

NON-CASH DONATIONS

If you make non-cash donations to charity, you can reduce your taxable income by the value of the donation.

Non-cash donations include assets such as:

Land
Property
Fund investments
Listed shares

In addition, in most cases you won’t pay any Capital Gains Tax (CGT) on gains you’ve made on those assets. We can give you further advice on this aspect of charitable giving.

Find out more about Non-Cash Donations

Sign up for the latest industry insights

Blog4th Sep 2024
Italy – One Of The Most Attractive Tax Destinations For The Wealthy Suddenly Got More Expensive
La dolce vita translates to ‘the sweet life’, and it’s far more than just a phrase in Italy, it really does represent an entire lifestyle associated with their culture and way of life. Italians have a particular appreciation of celebrating…
By Lynn Gracie and Carol Edwards
View more
Blog20th Aug 2024
Indian and Pakistani Domiciled Individuals – Are IHT Changes Coming?
Is it time for Indian and Pakistani domiciled individuals to breathe a sigh of relief? The taxation of non-domiciled individuals has been a hot topic over the last few years, and has been at the forefront of many people’s minds…
By Tom Andrew and Gunhild Dam
View more
Blog31st Jul 2024
Everything We Know From Labour About The 2025/26 Non-Dom Changes
This week we have received the first significant update from the new government on how the regime for non-UK domiciled and internationally mobile individuals may look under their stewardship. It’s helpful then, to revisit the initial proposed non-dom changes from…
By Lynn Gracie
View more
Blog29th Jul 2024
Inheritance Tax- (IHT) Will Labour Make Changes?
Following Labour’s win at the 2024 General Election, there has been speculation that changes may be made to the current Inheritance Tax (IHT) regime in order to generate more tax revenue. Labour’s plans for Inheritance Tax have not been confirmed,…
By Alex Thomson and Jen Kinnear
View more