One of the most effective ways of giving to charity, Gift Aid is a UK government scheme that enables ArtsEd to claim tax relief on donations from UK taxpayers. For every £1 donated by a UK taxpayer, 25p in reclaimed tax is added. This means that a £100 gift with Gift Aid is worth £125 to ArtsEd.
If you are a higher rate tax payer, it is then possible for you to claim back the remaining tax paid on the donation (that is, the difference between the basic rate and higher rate at 40% or 45%) through your tax return.
Higher Rate Tax Payer Giving Example
Please note that we will share relevant and necessary data with HM Revenue and Customs to enable us to reclaim the Gift Aid on your donation.
Donations from companies are not eligible for Gift Aid. However, the company can treat the gift as an allowable expense, making a saving on corporation tax.
For the latest information, see the government’s guidance on Gift Aid.
We are able to receive tax-deductible donations from American supporters via the King Baudouin Foundation United States – find our more and donate via their website.
UK taxpayers who are paid under PAYE (Pay As You Earn) can maximise regular donations to ArtsEd through payroll giving. Gifts made through this scheme are taken directly from the gross pay, giving the benefactor immediate tax relief at the highest rate of tax for which they qualify. The amount of tax relief you get depends on the rate of tax you pay.
If you are a UK taxpayer and are interested in this method of giving, please request an application form from your employer, detailing your wishes to donate to ArtsEd. The employer will then deduct a gift directly from your salary before tax is applied.
For the more details, see the government guidance on payroll giving.
Share giving is the most generous tax relief available to benefactors, combining relief on income and capital gains tax. In the UK, share gifts qualify for tax relief equal to the market value of the shares on the day the gift is made, including associated costs such as broker fees. The tax relief can be claimed for the year in which the gift is made.
For example, a gift to ArtsEd of £1,000 worth of shares, made by an individual who is a higher rate taxpayer, would reduce their income tax by up to £500 for the year. Additionally, the benefactor would not have to pay any Capital Gains Tax (CGT) on any increase in the value of the shares since they were bought. If the shares have gone down in value, however, it is not possible to use this loss to offset any other CGT liabilities.
The government’s website has further information on donating shares.
Gifts to charity are exempt from Inheritance Tax (IHT) in the UK, and the government provides a further incentive when you leave 10% or more of your net estate to charity.
The government’s website has further information on leaving gifts to charity in your will.
All donors should seek independent financial advice before making a donation.
These links are also good sources of information:
Our Admirers, Enthusiasts and Champions receive some additional benefits every year. We have allocated a value to these benefits and this portion of your donation is not eligible for Gift Aid.
Benefits can be purchased separately at this price without making a donation. The online payment is set at the combined amount for each level of membership. If you would like to purchase the benefits package separately without donating, please contact Victoria Noël, Development Manager on 020 8987 6652 or at firstname.lastname@example.org.