Charities make a difference to millions of lives in the UK and
around the world. Whatever cause you care about there will be a
charity working on it. Remember you can get tax relief for any
charitable gifts if you make a gift aid declaration.
You make the gift out of your taxed income and the charity can
claim back basic rate tax on the value of the gift. Higher and
additional rate taxpayers can claim an extra 20% or 25% in relief.
Intermediate, higher and top rate taxpayers in Scotland can claim
an extra 1%, 22% or 27% in relief.
You can obtain both income tax and CGT relief on gifts to
charities of shares listed on the stock market and certain other
investments.
Gifts to charity are free of IHT, so remembering a charity in
your will can reduce the total amount of IHT that will be paid on
your estate. If at least 10% of your net estate is left to charity,
then the rate of IHT payable on the remainder of your estate will
be reduced from 40% to 36%.
