There are a number of tax efficient ways to give to charity as an individual. You might be able to claim some tax back using these methods. Depending on the type of gift you make, you may have to make a claim to receive the tax relief (either on your Self Assessment tax return or by contacting your own Tax Office).
The different ways that you can give in a tax efficient way are summarised below.
- Gift Aid
If you are a UK taxpayer, you can use Gift Aid to make your donation go further. It doesn’t cost you any more, but could increase the value of your gift. We can reclaim an extra 25p on every pound you donate.
Gift aid will be claimed by the University of Aberdeen Development Trust from the tax you pay for the current tax year. Your address is needed to identify you as a current UK taxpayer.
Please notify us if you wish to cancel this declaration, if you change your name or address, or if you no longer pay sufficient tax on your income or Capital Gains.
If you are able to confirm the Gift Aid Declaration below with your signature, address and the date, then we can reclaim tax on your donation.
Gift Aid Declaration
I am a UK taxpayer and understand that if I pay less Income Tax and/or Capital Gains Tax in the current tax year than the amount of Gift Aid claimed on all my donations it is my responsibility to pay any difference. I have read this statement and want the University of Aberdeen Development Trust to reclaim tax on all my donations until further notice.
- Payroll Giving
An increasing number of employers offer payroll giving, enabling their staff to give to charity directly from their gross salary before deduction of tax. For employers, payroll giving is a convenient and easy-to-run contribution to employee relations and a demonstration of corporate social responsibility.
Donations are made out of income before Income Tax is taken off. This means that you are given tax relief immediately at their highest rate of tax. For example, a donation of £100 costs a basic rate taxpayer £80 and costs 40% or 50% higher rate taxpayers £60 or £50 respectively.
You can join the scheme by asking your employer’s payroll department for an application form. This should be filled in and given back to the employer.
Donating through this scheme gives you the convenience of regular giving plus the benefits of tax relief. If your employer offers payroll giving, and you decide to take part and donate to the University, please let us know so that we can thank you appropriately.
If you are a University member of staff click here to find out more about payroll giving.
- Stocks and Shares
Charitable giving legislation introduced in 2000 allows personal tax relief when you donate shares, securities and 'real property' (land and buildings) to charity. When you do this you could benefit from tax relief as follows:
Income tax relief
If you are a higher rate taxpayer and you give us shares worth £20,000, you will get a tax saving equal to 40% of £20,000, or £8,000. If you are a basic rate taxpayer you could claim 20% of £20,000, or £4,000.
Capital gains relief
Gifts of shares to a charity are exempt from capital gains tax. If, for example, you had already used up your annual capital gains allowance and you give us shares worth £20,000 that originally cost you £5,000, your tax saving would be 40% of £15,000 or £6,000.
Gifts of appreciated securities can therefore give both income and capital gains tax benefits, and may allow you to make a significant gift at minimal cost to you.
- Charities Aid Foundation
You can make a one-off gift of any amount with a Charities Aid Foundation (CAF) voucher. The University receives no extra tax benefit from gifts of this kind.