Great Big Charity Giving - Tax Relief

[Top Hat]

With all the noise about charity giving and tax relief in the media, I've not come across the numbers.

So
If you give £500,000 to charity do you
Reduce you Tax bill by more that £500,000 (You're a winner, and you get to choose what your money is spent on)
Reduce your tax bill by exactly £500,000 (You get to choose what your money is spent on)
Reduce you tax bill by less than £500,000. (You're out of pocket, but you do get to choose what your money is spent on)

 

[british steve]

[FONT=&quot]It’s good to know that rich people only make charitable donations because they can claim it back against tax! Sort of takes away the Kudos a little![/FONT]

 

[sla3]

[FONT=&quot]It's good to know that rich people only make charitable donations because they can claim it back against tax! Sort of takes away the Kudos a little![/FONT]

That's not actually the case. This is a case (not you, but more widely in the media) of too many people talking without actually understanding because sound-bites are more valuable than accuracy and the factless debate is much easier to enter into than one which requires a bit of thought and/or research.

They still have to give the money away, therefore they do not have the benefit of it. They do not pay the tax on that which they give away but they pay tax on what they don't give away like everyone else.

You and I and every other tax payer gets almost exactly the same benefits: it's called "Gift Aid Tax Relief". If I want to give £1000 to the local dogs' home, I can either give them £1000 and they can claim £250 from HMRC, or I can give them £800 and they can claim £200 from HMRC.

If I'm a 40% tax payer, I can ALSO reclaim 15% (I think it's 15% it might be 18%) from HMRC.

The issue for most philanthropists is that THEY want to control what happens to the money they would otherwise have paid in tax. In the case of the woman who's given away £60m SHE wants to decide what to do with £24m+ that should have gone to the treasury so the ELECTED GOVERNMENT could decide how to spend it.

I've no idea who she donated to, but if it were to a foreign charity of dubious provenance, would that be right? No. Would it be right that she chose to give 'our' share of her income (tax) to ANY foreign charity? No.

Nor is it right that only the rich should chose exactly on which pet projects their taxes should be spent.

 

[stavenmorris]

Yes, You will be write for big charity giving some tax relief but you given a more amount of your income to charity and then after you taking more benefits for tax. It's a really big deal for that. I know charity is really be good to helping more people and i also donating a some amount of my income to regular giving for charity. And yes you doing good work for charity.