Tax efficient giving
Wouldn’t it feel good if your donation could be extended with a little help from the taxman?
When you make a donation under the Gift Aid scheme, the taxman makes a contribution of his own by enabling HCC to reclaim the income tax that you have already paid on the amount of the gift. There is no extra cost incurred by you.
For every pound you donate to HCC, we can reclaim 25p more directly from the taxman (based on a basic rate of tax at 20%).
To be able to claim Gift Aid, you must pay income tax (or capital gains tax) equivalent to the amount we reclaim. All you have to do is complete a simple form saying that you are an income or capital gains taxpayer and this will cover all of the donations you have made in the past six years and any future donations. It doesn’t cost you anything extra.
Higher rate taxpayers are eligible for additional tax relief.
Other ways to give tax-efficiently
There are also other ways in which the taxman can help you to help us.
A bequest to HCC in your Will does not incur Inheritance Tax. Depending on the size of your estate, and the value of your legacy, this can save up to 40% in Inheritance Tax that might otherwise have had to be paid.
A legacy is one of the most valuable and enduring ways in which to help HCC in their work, now and in the future. Please refer to our Legacies section for further information.
Where employers run a Payroll Giving Scheme it is possible to arrange for a specific amount to be deducted (before tax) from each pay cheque for donation to HCC meaning it costs you less to give more. Many employers will also match donations.
Gifts of Shares
Very generous tax relief is available on the gift of shares. Donors pay no Capital Gains Tax on the disposal of their shares and can deduct the market value of the gift from their taxable income for the year. This is of especial benefit to higher rate taxpayers.
Please see HM Revenue & Customs website for more information.