Tax Efficient Giving

ArtsEd is a registered charity (No. 311087) and benefits from several schemes that help supporters make tax efficient donations.

Gift Aid

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

  • Mrs Smith makes a donation of £100 to ArtsEd. She is taxed at the higher rate of 40%.
  • We claim back £25 (equivalent to the basic rate tax paid on the donation), meaning the value of Mrs Smith’s gift to us is £125.
  • Mrs Smith then claims back the difference between the basic rate tax (20%) and higher rate tax (40%) paid on her donation. Her claim should be based on the actual amount that we receive, rather than her initial donation – so £125 rather than £100.
  • Paying tax at 40%, Mrs Smith can claim back £25 (that is, a difference in lower/higher rate tax of 20% on a donation worth £125). The scheme works in the same way for those who pay additional rate tax at 45% – but allows them to claim an additional 5%.

Other Gift Aid Notes

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.

American Supporters

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.

Payroll Giving

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.

Giving stocks and shares

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.

Legacies and reducing inheritance tax

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.

More help and information

All donors should seek independent financial advice before making a donation.

These links are also good sources of information:

ArtsEd Friends & Gift Aid

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.

  • Fan donation: £120 (no chargeable benefits)
  • Admirer donation: £450 (benefits, £50)
  • Enthusiast donation: £1,425 (benefits, £75)
  • Champion donation: £2,800 (benefits, £200)

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 MaryAnn Parish, Head of Development on 020 8987 6652 or at mparish@artsed.co.uk.