Take part in Small Charity Week
This week (15th – 20th June) is Small Charity Week, a week in recognition of smaller charities and their invaluable contributions to society.
Our Private Client team are participating by supporting local charity Lewis Manning in their make a Will fortnight.
People choose to give to charities in a number of ways both during their life and on death this article seeks to provide you with the need-to-know basics on charitable gifting.
We all see the box on the donation form and many are aware that it is a way of charities claiming an extra 25% on our donations – but how does this actually work?
The 25% is claimed from the income tax (or capital gains tax) that we pay in any tax year. It is therefore important that the total amount of gift aid that can be claimed from all of your donations does not exceed the amount of tax you pay in that tax year.
If you are not a UK tax payer or the total amount that the charities can claim from gift aid from your donations exceeds the tax you pay you should not tick the gift aid box. HMRC can send you a bill for the gift aid amount if you wrongly tick the box.
Gifts in a Will
Gifts to charities are a great way to save on any inheritance tax liability, if you have a large estate, and to feel good knowing that your money is going to a cause you support.
Gifts to charities under a Will are paid free of inheritance tax but inheritance tax savings can also be made where 10% or more of you estate passes to a charity. Usually inheritance tax is payable at 40% on any portion of a persons estate that exceeds the nil rate band (currently £325,000 for an individual) however, where 10% or more of the estate is gifted to charity the rate of tax can be reduced to 36%.
Other ways to support a small charity
Thursday 17th June is volunteering day in Small Charity Week.
If you would love to support a small charity but cannot do so financially why not offer your skills to assist them in other ways. Volunteers are the backbone of many charities and there are a range of opportunities out there. Find out more about volunteering roles in your area on the Small Charity Week website or by contacting the charity you wish to support direct.