188体育

Donations by individuals to charity or to community amateur sports clubs (CASCs) are tax free. This is called tax relief.

The tax goes to you or the charity. How this works depends on whether you donate:

• through Gift Aid
• straight from your wages or pension through a Payroll Giving scheme
• land, property or shares
• in your will

This also applies to sole traders and partnerships. There are different rules for limited companies.

If you want to donate to a sports club, check if it鈥檚 registered as a community amateur sports club (CASC). You cannot donate to a CASC through Payroll Giving.

Keeping records

You鈥檒l need to keep a record of your donations if you want to take them off your total taxable income.

Donating through Gift Aid means charities and community amateur sports clubs (CASCs) can claim an extra 25p for every 拢1 you give. It will not cost you any extra.

Charities can claim Gift Aid on most donations, but some payments do not qualify.

What you need to do

You need to make a Gift Aid declaration for the charity to claim. The charity or CASC will give you a form to sign. They must also have an HMRC charity reference number - ask the charity or CASC if you鈥檙e not sure.

You must give a declaration to each charity you want to donate to through Gift Aid.

You can include all donations from the last 4 years. Tell the charity about any tax years where you did not pay enough tax.

Paying enough tax to qualify for Gift Aid

Your donations will qualify as long as they鈥檙e not more than 4 times what you have paid in tax in that tax year (6 April to 5 April).

The tax could have been paid on your income or capital gains.

You must tell the charities you support if you stop paying enough tax.

If you donate through Payroll Giving

If your employer or pension provider offers a Payroll Giving scheme, any donations you give through the scheme will be taken before Income Tax is taken off.

You鈥檒l still pay National Insurance contributions on the amount of your donation. But you will not pay any Income Tax on the amount you donate.

If you鈥檙e a higher-rate taxpayer

You can claim back the difference between the tax you鈥檝e paid on the donation and what the charity got back when you fill in your Self Assessment tax return. It鈥檚 the same if you live in Scotland. Do this either:

• through your Self Assessment tax return
• by contacting HM Revenue and Customs (HMRC) and asking them to amend your tax code

Example

With Payroll Giving, you do not pay the difference between the higher and basic rate of tax on your donation.

Getting tax relief sooner using your tax return

In your Self Assessment tax return, you normally only report things from the previous tax year.

But for Gift Aid, you can also claim tax relief on donations you make in the current tax year (up to the date you send your return) if you either:

• want tax relief sooner
• will not pay higher rate tax in current year, but you did in the previous year

You cannot do this if:

• you miss the deadline for your Self Assessment tax return (31 January if you file online, or 31 October if you file by post)
• your donations do not qualify for Gift Aid - your donations from both tax years together must not be more than 4 times what you paid in tax in the previous year

Getting tax relief sooner if you do not have to send a tax return

Contact HMRC. You can claim:

• 拢5,000 or less by phone
• more than 拢5,000 in writing

You need to tell HMRC how much you donated.

If you鈥檙e claiming tax relief on donations of 拢10,000 or more, you also need to tell HMRC:

• the date you made the donation
• who you made the donation to

If you get Married Couple鈥檚 Allowance

Your tax-free allowance may increase if you make donations through Gift Aid and claim Married Couple鈥檚 Allowance.

If you fill in a Self Assessment tax return, your allowance will be adjusted automatically if it needs to be.

If you do not, contact HMRC to tell them about your charity donations.

If your employer, company or personal pension provider runs a Payroll Giving scheme, you can donate straight from your wages or pension. This happens before tax is deducted from your income.

Ask your employer or pension provider if they run a Payroll Giving scheme.

The tax relief you get depends on the rate of tax you pay. To donate 拢1, you pay:

• 80p if you鈥檙e a basic rate taxpayer
• 60p if you鈥檙e a higher rate taxpayer
• 55p if you鈥檙e an additional rate taxpayer

The tax relief you get is different if you live in Scotland. To donate 拢1, you pay:

• 81p if you鈥檙e a starter rate taxpayer
• 80p if you鈥檙e a basic rate taxpayer
• 79p if you鈥檙e a intermediate rate taxpayer
• 59p if you鈥檙e a higher rate taxpayer
• 54p if you鈥檙e a top rate taxpayer

You do not have to pay tax on land, property or shares you donate to charity. This includes selling them for less than their market value.

You get tax relief on both:

• Income Tax
• Capital Gains Tax

You must keep records of the donation to show that you鈥檝e made the gift or sale and that the charity has accepted it.

Income Tax relief

You can pay less Income Tax by deducting the value of your donation from your total taxable income. Do this for the tax year (6 April to 5 April) in which you made the gift or sale to charity.

How to claim

If you complete a Self Assessment tax return, add the amount you鈥檙e claiming in the 鈥楥haritable giving鈥� section of the form. This will reduce your Self Assessment bill.

If you do not complete a tax return, contact HMRC with details of the gift or sale and your tax relief amount. You鈥檒l either get a refund, or your tax code will be changed so you pay less Income Tax for that tax year.

Capital Gains Tax relief

You do not have to pay Capital Gains Tax on land, property or shares you give to charity.

You may have to pay if you sell them for more than they cost you but less than their market value. Work out your gain using the amount the charity actually pays you, rather than the value of the asset.

Selling land, property or shares on behalf of a charity

When you offer a gift of land, property or shares, the charity may ask you to sell the gift on its behalf.

You can do this and still claim tax relief for the donation, but you must keep records of the gift and the charity鈥檚 request. Without them, you might have to pay Capital Gains Tax.

Your will says what will happen to your money, property and possessions after you die.

Your donation will be taken off the value of your estate before Inheritance Tax is calculated. If 10% or more of your estate is left to charity, your Inheritance Tax rate may also be reduced.

You can donate:

• a fixed amount
• an item
• what鈥檚 left after other gifts have been given out

Writing your will

Find out how to write or update your will, including how to make sure it鈥檚 legal.

Include the charity鈥檚 full name - check with them or:

• search the charity register in England and Wales

You need to keep records of donations if you want to claim tax back on them.

Gift Aid donations

Keep records if you:

• pay higher rate tax
• claim tax credits
• get a higher Personal Allowance because of your age
• get Married Couple鈥檚 Allowance

If you鈥檙e claiming tax back through your Self Assessment tax return or by asking HM Revenue & Customs (HMRC) to amend your tax code keep records showing the date, the amount and which charities you鈥檝e donated to.

Land, buildings and shares

For donations of land, property or shares you need to keep:

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

You normally have to keep your records for at least 22 months from the end of the tax year they鈥檙e for.