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Legal Terms – Gift Aid
donation assistance A mechanism that allows donations made to a charity by an individual or corporation to be regarded as a net amount from which basic rate tax has been subtracted. Consequently, the charity is able to recover the presumed basic rate credit. If the taxpayer is liable for tax at a higher rate, they can seek relief at that rate by including the charitable donation in their self-assessment for the tax year in which the donation occurs. The taxpayer is required to submit a gift assistance declaration to the charity. This declaration, atypical in tax affairs, may be issued retroactively and stipulate that all gifts made on or after 6 April 2000 shall be regarded by the charity as having been made under gift aid. There exist comparable tax-efficient arrangements by which relief is secured on the donation of land, stocks and shares, or equipment and machinery. Tax reduction is unavailable for a "tainted donation," which refers to a gift from which the giver or an associated individual gains any benefit. Finance Act 2011 Schedule 3.
donation assistance A mechanism that allows donations made to a charity by an individual or corporation to be regarded as a net amount from which basic rate tax has been subtracted. Consequently, the charity is able to recover the presumed basic rate credit. If the taxpayer is liable for tax at a higher rate, they can seek relief at that rate by including the charitable donation in their self-assessment for the tax year in which the donation occurs. The taxpayer is required to submit a gift assistance declaration to the charity. This declaration, atypical in tax affairs, may be issued retroactively and stipulate that all gifts made on or after 6 April 2000 shall be regarded by the charity as having been made under gift aid. There exist comparable tax-efficient arrangements by which relief is secured on the donation of land, stocks and shares, or equipment and machinery. Tax reduction is unavailable for a "tainted donation," which refers to a gift from which the giver or an associated individual gains any benefit. Finance Act 2011 Schedule 3.
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