CH9 - Tax Relief on Donations to Charity

Question 1

Gift Aid

If a charitable donation under the ?

Answer 1

Gift Aid scheme is made, the taxpayer’s basic rate and higher rate limits are extended by the donation grossed up by 100/80.

20% relief is given at source and further relief is given to higher and additional rate taxpayers by increasing the amount of income taxed at basic rate rather than at higher rates.

Question 1

Gift Aid

The taxpayer must pay sufficient income and/or capital gains tax to

Answer 1

cover the tax treated as deducted from source from the donation.

Question 2

Gift Aid

Gift Aid donations can be carried back and treated as having been made in the previous tax year. Both the donation and the election to carry back must be made by ?

Answer 2

31 January in the tax year.

Question 3

Gift Aid

When calculating a personal allowance, the grossed-up donation is deducted from net income prior to ?

Answer 3

calculating any restriction required.

Question 4

Deductible Payments

If a gift of quoted shares or land is made to charity, the relevant value of those shares or land is ?

Answer 4

deductible from income.