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Charitable Donations

If you’re feeling extra generous, why don’t you give some money to charity? If, for example, you earn £51,000, giving £1,000 will reduce your net income to £50,000. Whilst also doing a very good deed, giving this money to charity can also make you eligible to full child benefit.

In order to claim these, the organisation you give to must be recognised as a charity for tax purposes by HMRC. You can check this by asking the charity to confirm that it has an HMRC charity reference number. 

On SimpleTax will find a "Personal Expenses (Charity)" page where you can declare 3 types of donations:

Gift Aid

When you donate, the charity will ask you whether you want donate through Gift Aid. If you do, they’ll be able to claim back the tax you originally paid at the basic rate of 20%. 

You can request to carry back the donation before or at the same time as you complete your Self Assessment tax return for the previous year but no later than the filing deadline. SimpleTax makes it easier for you to input you Gift Aid options into your return by simply entering the amount, name of charity and selecting from 4 boxes (non-uk charity, carry to previous year, carry to next year & one off donations).

Charitable Donations (Securities)

Qualifying securities are:

  • shares or securities listed on a recognised stock exchange
  • shares or securities dealt in on a designated market in the UK. The only markets currently designated for these purposes are the Alternative Investment Market (AIM) of the London Stock Exchange and the PLUS-Quoted Market of PLUS Markets
  • units in an Authorised Unit Trust
  • shares in an open-ended investment company (OEIC)
  • an interest in certain overseas collective investment schemes (broadly, schemes equivalent to unit trusts or OEICs).

The relief that you can claim will usually be the market value of the shares or securities at the time you give or sell them to the charity plus any incidental costs of disposal (for example, brokers’ fees or stamp duty) and less the value of any consideration or benefits that you receive in connection with the gift or sale.

Charitable Donations (Property)

If you donate an asset to charity you should keep all records of:

  • legal documents showing the sale or transfer of assets (land or buildings) to charity
  • any documents from a charity asking you to sell land or shares on its behalf


PLEASE NOTE: post 6 April 2016, donors must have paid an equivalent amount in tax or they will be liable to HM Revenue & Customs for the shortfall

SimpleTax makes a daunting task very easy.

 

 

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SimpleTax automatically tells you what expenses you should be claiming, what you should watch out for and ways to lower your tax bill.

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