You can get tax relief for any gifts to charity if you make a gift aid declaration.
You make the gift out of your taxed income and the charity benefits by claiming back basic rate tax on the value of the gift. Higher and additional rate taxpayers can claim an extra 20% or 30% in relief.
- You can elect for donations made in 2011/12 to be treated for tax purposes as if you had made them in 2010/11. This will benefit you if you paid tax at a higher rate in 2010/11 than in 2011/12.
- The election must be made in writing at the same time as, or before, filing your 2010/11 tax return but should have been no later than 31 January 2012.
- You can obtain both income tax and capital gains tax relief on gifts to charities of shares listed on the stock market and certain other investments.
- Gifts to charity are free of IHT, so remembering a charity in your will can reduce the total amount of IHT that will be paid on your estate.