Gift Aid
- Higher rate tax relief is available to persons who make gifts of cash under the Gift Aid program to registered charities. When making such payments, tax at the basic rate is automatically deemed to have been deducted at source. Any amounts of tax which are taken to be deducted in the way must be less or equal to the total tax due against that person in the given tax year.
- Additionally relief might apply to gifts to registered charities of equities and land and property.
- The option currently exist for persons to have all or some of their overpayment of tax repaid to their selected charity and to have such a donation classed as a Gift Aid contribution.
- The option mow exists to elect that gift payments made by individuals to a registered charitable organisation be taken as having been made in the previous tax year. Such an election must be made in the tax year in which the payment is made and included on that period's tax return.
Give As You Earn
- Where a person is employed, they may permit their employer (who must be eligible to do so) to take amount from their gross salary for the purpose of giving it to their selected charity.
- The employee could then gain relief at their highest rate of tax for the amount given.
