HMRC clarifies tax break on gifts

Gift aid

If you’re a higher or additional rate taxpayer you can claim extra tax relief for charitable donations you make under the gift aid arrangements. This tax break applies to donations by individuals and not to those made by companies, organisations or groups of individuals. This has caused some newspapers to suggest that where you make donations in the form of a sponsorship, typically through websites like JustGiving, and include a message that implies the gift is from more than one person, such as “Good luck from all of us” , you’ll lose the gift aid tax break because the sponsorship is not from an individual.

HMRC clarifies

HMRC issued a statement in March 2016 confirming that where the donation (gift) is made by one person the tax relief is not jeopardised where other names are added to an accompanying message. So you can keep giving and claiming the extra tax relief!

Higher and additional rate taxpayers can claim extra tax relief on gift aid donations. Press reports suggesting that the tax break is lost if you add other names to a message of support with the donation are wrong. HMRC has confirmed gift aid relief is not affected by this.