Tax Efficient Giving
Gifts of Cash by Gift Aid
Making a gift of any size using the Gift Aid Scheme, enables the Taunton School Foundation to reclaim from the Government the basic rate of tax on the gift which will already have been paid by the donor, including Transitional relief announced in the 2007 budget.
Higher rate tax payers can claim higher rate relief on their donations by including them in the Gift Aid box on their Self Assessment Tax Return.
Gift Aid Table
You give | We receive | Cost to 40% taxpayer |
£25.00 | £32.05 | £18.75 |
£50.00 | £64.10 | £37.50 |
£100.00 | £128.21 | £75.00 |
£500.00 | £641.03 | £375.00 |
£1,000.00 | £1,282.05 | £750.00 |
£10,000.00 | £12,820.51 | £7,500.00 |
Gifts of Shares and Securities
In this instance, it is the donor, and not the recipient, who can achieve potentially large tax savings, not only on Capital Gains Tax, but on Income tax as well.
All donations of shares to Charities now receive Income Tax relief of 100% of their market value. This means that if you give shares worth £10,000 to the Taunton School Foundation, you will receive Income Tax relief based on this in full, i.e. £4,000 at the higher rate of tax. This relief applies whether it is an individual or a company disposing of the shares.
The donor can deduct the market value of the shares or securities on the date of disposal plus any incidental costs of disposing of the shares (Brokers fees etc) less any consideration given in return for disposing of the shares and the value of any other benefits received by the donor, or a person connected with the donor, in consequence of disposing of the shares. Donors will claim the tax relief, at their top rate of tax, on their Self Assessment or Corporation tax return.
The only requirements to make such a saving are that the donors must:
- claim the tax relief themselves on their tax return
- give the shares in tact to the Charity (i.e. not sell them first)
- give listed shares or securities unit, units in authorised unit trusts, shares in open minded investment companies, holdings in foreign collective investment schemes or unlisted shares in securities dealt on a recognised Stock Exchange such as the Alternative Investment Market (AIM).
In addition to the Income Tax saving, donors making gifts of shares to the Taunton School Foundation will not attract any Capital Gains liability. If a tax payer makes a gift with £100,000 worth of capital gains to charity, there will be no Capital Gains Tax payable on this gift, a potential saving of £40,000.
Together, this means that a tax payer making a gift of £200,000 (with a capital appreciation of £100,000) could pay as much as £120,000 less in tax compared with a non-charitable disposal. An incredible saving.
Payroll Giving
Any amounts can now be given using the Payroll Giving Scheme where by you authorise your employer to deduct payment from your salary before calculating PAYE tax. The Government presently pays 10% on top of all payroll giving donations. Please contact your employers for further information and forward this to the Foundation Director.
Corporate Matching Schemes
Many businesses offer Matching Gift Programmes for employees and their families. Most programmes match gifts on a per basis and this is therefore a highly effective means of giving. If you would like to proceed please deal directly with your employers and then contact the Foundation Director.
Legacies
Please refer to the Legacies link.
Taunton School Educational Charity is a Company Limited by Guarantee.