The UK is a generous country, home to some of the world’s greatest philanthropists, to some 150,000 charities, and to a public that donated £11.7billion to charitable causes in 2014. Research recognizes the important indirect benefits of charitable giving, that have large benefits for the giver as well as the receiver. Individuals are happier when given the opportunity to spend money on others rather than themselves.
If you have a favorite charity or wish to leave a donation or legacy to a charity or charitable cause we are here to advise and plan this process. The government encourage charitable giving by allowing the donation to be deducted from your estate before tax is calculated, or may reduce your inheritance tax rate if more than 10% of your estate is left to charity.
We will discuss your options and advise you how to make the most efficient donation of money to your chosen cause.
Leaving gifts to charity in your will
Your will says what will happen to your money, property and possessions after you die.
Your donation will either:
- be taken off the value of your estate before Inheritance Tax is calculated
- reduce your Inheritance Tax rate, if more than 10% of your estate is left to charity
You can donate:
- a fixed amount
- an item
- what’s left after other gifts have been given out
Writing your will
Find out how to write or update your will, including how to make sure it’s legal.
Include the charity’s full name – check with them or search the charity register in England and Wales, Scotland or Northern Ireland. Click Here for more information.
You need to keep records of donations if you want to claim tax back on them.
Gift Aid donations
Keep records if you:
- pay higher rate tax
- claim tax credits
- get a higher Personal Allowance because of your age
- Get Married Couple’s Allowance
- If you’re claiming tax back through your Self Assessment tax return or by asking HM Revenue & Customs (HMRC) to amend your tax code keep records showing the date, the amount and which charities you’ve donated to.
Land, buildings and shares
For donations of land, property or shares you need to keep:
- legal documents showing the sale or transfer to charity
- any documents from a charity asking you to sell land or shares on its behalf
You normally have to keep your records for at least 22 months from the end of the tax year they’re for.
Click here for information about leaving gifts to charity in your will.