Tax-efficient giving: UK taxpayers
How does it work?
If you are a UK taxpayer, and you complete a Gift Aid Declaration form, we can reclaim tax so that the value of your gift increases by 25%.
Example
- Mrs X donates £1000
- Rhodes Trust reclaims tax of £250 (since £1250 income is worth £1000 after being taxed at the basic rate of 20%)
Furthermore, if you are a higher rate taxpayer, you can reclaim an additional portion of tax, by completing the section on Gift Aid payments in your Self Assessment tax return. If you do not complete a return you can give the details on form P810 Tax Review which is available from your tax office. For more information, please see the HM Revenue and Customs pages about Gift Aid.
Example
- Mrs X donates £1000
- Rhodes Trust reclaims tax of £250 (since £1250 income is worth £1000 after being taxed at the basic rate of 20%)
- If you pay tax at 40 % you can claim back £250 (£125 × 20%)
- If you pay tax at 50% you can claim back £375 (£1250 × 20%) plus (£1250 × 10%)
- So the total value to Rhodes Trust of Mrs X's gift (£1250) will be over 60% greater than the net cost to you of making the gift if you reclaim £250 in tax (£750)
Here are some more numerical examples for a higher-rate taxpayer (paying tax at 40%):
| Donor's (net) gift |
|
Tax reclaimed by Rhodes Trust |
|
Tax relief for donor |
|
Total (gross) value of gift to Rhodes Trust |
|
Total (net) cost of gift to the donor after tax relief |
| £1000 | £250 | £250 | £1250 | £750 |
How do I do it?
As a donor, you simply need to complete a Gift Aid Declaration form provided by the Rhodes Trust once at the time of your first donation. To download the form, click here. If you have already given to the Rhodes Trust, but have not signed a Gift Aid Declaration form, you can do so at any time, and we can then reclaim tax on gifts made in the past six years.
You must pay an amount of income tax and/or capital gains tax at least equal to the tax to be reclaimed on all your charitable donations in the relevant tax year.
Please let us know if you want to cancel your declaration, if you change your name or home address, or if you no longer pay sufficient tax on income and/or capital gains. Other taxes, such as VAT or council tax do not qualify.
The income tax relief would be claimed by completing the relevant section in a Self Assessment Tax Return, or if you pay tax by PAYE, writing to your tax office. Please see HM Revenue and Customs pages about Gift Aid.
