Richard Curtis outlines various tax reliefs on charitable giving by individuals.
Charitable giving is seen as a ‘good thing’ and is supported by the UK tax system with various tax reliefs designed to encourage donations. As well as financially incentivising the donors, these reliefs also benefit the charities by increasing the value of donations.
This article looks at the various tax reliefs available to individuals.
Gift aid
The most well-known tax relief for charitable giving is gift aid. An individual, when making a charitable donation, can sign a declaration that this is made within the gift aid system. This means that the donor has paid income tax or capital gains tax equivalent to the basic rate of income tax on the grossed-up donation.
For example, a donation of £80 is treated as a gross donation of £100
