Charity begins with tax benefits

When individuals think about making a gift to charity, supporting good work in particular fields of charitable activity is normally the predominant motive. Nonetheless, the fact that gifts attract very generous tax treatment is an added attraction and a boost to individuals’ philanthropic instincts. Basic-rate taxpayers In respect of basic rate taxpayers, charities benefit under Gift Aid by recovering the basic rate paid, so a taxpayer gives £800 net income, and the charity receives a total of £1,000. 40% rate taxpayers The benefit for higher-rate taxpayers is greater. Until this ...