Tax-Effective Giving

Learn more about the the benefits of tax-effective giving, Gift Aid and tax relief for higher-rate tax payers.

Having charitable status allows gifts to Downe House to be tax-efficient. The benefits of Gift Aid are considerable. If you pay UK tax on any kind of income, including capital gains, then the School is entitled to reclaim the basic rate of tax that you have already paid on your gift at no cost to you – this works out at 25p for every £1 donated. Higher-rate tax payers can also reclaim the difference between standard and higher rate tax on their donation for themselves through their Tax Return, which means it costs you less to give.

The budget in March 2000 saw a significant change in how individuals and companies can donate to charities, which, for the first time, has real benefits accruing to the donor as well as the beneficiary of gifts of shares. For more information on donating shares download our handy advice sheet here.

Tax effective giving for stocks and shares advice sheet

Gift Aid

Gift Aid is one of the easiest ways to make your donation tax-effective.

If you are a UK tax payer, 25% will be added onto your gift at no cost to yourself, simply by ticking the Gift Aid box on the donation form. Please use the calculator below to find out exactly how much your gift could be worth.

Tax Relief for Higher-Rate Tax Payers

If you are a higher-rate tax payer in the UK, you can reclaim £2.50 on every £10 you donate, simply by entering the details on your tax return. Find out more details from HMRC.

At either the 40% or 45% tax rates, you can claim the difference between the higher rate of tax and the basic rate of tax 20% on the total ‘gross’ value of your donation us.

For example:

Single Gift
(Higher-rate tax payer at 40%)
DonationNet Cost to DonorGross Value to Downe House
£250£187£312
£1000£750£1,250
£10,000£7,500£12,500

 

Visits & Open Mornings

The best way to find out more about Downe House, is to come and experience it for yourself – arrange a visit or join us for one of our Open Mornings?

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