Charitable donations rose by 13 per cent from 2013 to 2014 according to a Community Life Survey, but tax efficient giving would make it climb even further, Tony Gammon has said.
The investment manager and client services director for Thesis Asset Management said advisers could help their clients to boost their giving tax-effectively through several methods.
Gift Aid
UK taxpayers can reclaim the tax paid on a donation from HMRC through Gift Aid which adds basic-rate tax relief at 20 per cent to all charitable gifts. Higher-rate taxpayers can also give tax-efficiently.
Gifting Shares
CGT doesn’t apply when gifting shares to a charity. Individuals with small, unwanted shares can also give these to charity, as it’s often too expensive to sell just a couple of shares because of the costs involved.
Payroll
Charity donations salary, or through a company or personal pension attract immediate relief from income tax on any payments made
Leaving money to charity in a will
Assets left to a charity do not attract inheritance tax. Leaving 10 per cent or more some of your estate to charity can decrease the IHT on it to 36 per cent.
His comments come as Thesis is hosting a series of roadshows this month to help advisers through the issues of the lower inheritance tax (IHT) rate.
They will outline key features of the lower IHT rate, which is set at 36 per cent where an individual is giving to charity, how it works and how it can be used by clients when planning their own estates. These seminars will also explore aspects of Gift Aid, the gift of land and quoted investments and how an inheritance can be altered by a Deed of Variation.
The events will be taking place throughout October in Crawley, Brighton and Chichester.
