Individuals are able to claim higher rate relief on cash gifts and payments to charities
under gift aid. Basic rate tax is treated as having been deducted, so you must pay
enough tax for the year to cover the tax witheld from your Gift Aid payment.
Special tax reliefs apply to gifts to charities of certain types of shares and securities,
or land and buildings.
Individuals have the opportunity to make a claim for charitable donations made in
one tax year to be treated as if they had been made in the previous tax year. For
example, a request could be made for Gift Aid payments made between 6 April 2015
and the date that the 2015 return is filed to be treated as if they were made in
the year to 5 April 2015. This would mean that a payment could rank for higher rate
tax relief for 2014/15, even if the donor is liable at basic rate only in 2015/16.
The request would normally be made by completing the relevant box in the 2015 tax
return, and the opportunity to carry back donations is lost once that return has
been filed (provided this is no later than 31 October 2015 or 31 January 2016, as
appropriate). It is not possible to amend the 2015 tax return in order to carry back
Give As You Earn
Employees may authorise participating employers to deduct donations from their gross
salary for forwarding to their nominated charities.
Employees receive tax relief in full on their donations.