Gift Aid

Changes in the 2000 Budget mean that all donations to charity by UK Tax payers can be treated as Gift Aid.  CABA can claim back the UK tax at the basic rate on the total value of your gross donation. Higher rate tax payers can also claim back the balance of tax paid.

In addition, HMRC will automatically pay CABA a further three pence for every pound donated.  This 'transitional relief' - to adjust to the fall in basic rate tax (from 22 per cent to 20 per cent) - is available from 6 April 2008 until 5 April 2011.

Furthermore, by completing a single declaration form, or making your declaration by phone or e-mail, all future donations can quality for tax relief without any effort on your part.

This means for every £1 that you donate, CABA can reclaim 28 pence, so the total value of your donation is £1.28.

Companies may also use the Gift Aid Scheme, paying the charity a gross donation without the need to complete a Gift Aid declaration and will claim tax relief when calculating their profits for taxation purposes. Charities will no longer reclaim tax relief on company donations.

Payroll Giving

Payroll giving is a convenient and tax efficient method of giving regularly to charity whereby your employer can deduct a donation from your salary each month before calculating PAYE tax. This sum plus tax at the highest rate that you normally pay is passed to a payroll giving agency, such as the Charities Aid Foundation, who either make the payment to the charity of your choice or set up an account from which you can issue cheques to the charitable causes. An administration fee of 4% is deducted from your gift by the payroll giving agency.

A higher rate tax payer who donates £8.83 a month or a standard rate tax payer who donates £6.41 a month will each only pay £5 a month from their salary.

As part of a campaign to promote payroll giving, the Government will add on an extra 10% supplement to all donations made under the payroll giving scheme from 6 April 2000-2003 inclusive. If your employer does not already operate a Payroll Giving Scheme, why not suggest that they consider this easy method of charitable giving? Some employers will meet the cost of the administration fee or will match the employee’s donation by a pre-agreed amount.

Gifts of Listed Shares and Securities

Individuals and companies can get tax relief for gifts of listed shares and securities to charity when calculating their income or profits for tax purposes. This new tax relief is in addition to the existing relief for gifts or shares, securities and other assets to charity when calculating capital gains.