Gift Aid is a most effective way of donating to us as the taxman adds to your gift. (You must be paying Income Tax or Capital Gains Tax for us to benefit from it though.) Moreover, if you pay higher rate tax, you get further personal tax relief.
The table below illustrates what a net gift of £100.00 produces (the figure of £100.00 is purely illustrative and is NOT an indication of what is expected):
| Basic rate tax payer | 40% rate tax payer | |
|---|---|---|
| Actual Donation | £100.00 | £133.34 |
| Personal tax relief | – | £33.34 |
| Net cost of Donation | £100.00 | £100.00 |
| Tax recovered by club | £25.00 | £33.34 |
| Total received by club | £125.00 | £166.68 |
If your spouse pays tax at the higher rate, but you don’t, it is more effective if the donation came from them (they don’t have to be a member). It can also be advantageous if higher-rate tax payers elect to have a gift they make now treated as if paid in the last tax year. In addition, there can be a great tax benefit in giving the club shares or other assets which are ‘pregnant’ with a Capital Gain.
Anyone wanting to discuss these matters should contact the Treasurer.
For more general details see HMRC on CASCs.
We’ve produced a GiftAid Form for donations to our club that is suitable for the HMRC. You need to fill this in and send back to the Club Treasurer. You can avoid filling this in every year if you tick the right box!