Major changes to tax efficient giving were introduced by the Government with effect from 6th April 2000. The previous minimum limit of £250.00 for Gift Aid donations was totally removed, and all gifts from UK taxpayers can be made under the new Gift Aid regulations.
Gift Aid increases the value of your gift by claiming back the tax paid on that amount through a salary, pension or other income. On the standard rate of income tax, this equates to approximately 28p for every £1.00 given, so if you send us a donation of £5.00, by simply signing a form your gift can be increased to £6.40. For a gift of £10.00 your gift can be increased to £12.80, and so on. This rate of 28p in the pound will change in April 2008 and full details will be posted here.
If you wish to join our scheme write to PO Box 2677, ROMFORD, RM7 8XF and we will provide you with a Gift Aid Declaration Form. This Declaration can also be used to cover any future gifts that you may send to us from the date that it is signed so that you do not need to fill in a form every time you send us a gift. Should your circumstances change in the future, you can of course cancel this at any time.
The only limit to using Gift Aid is that you must pay an amount of Income Tax or Capital Gains Tax which is at least that of the tax that is claimed back during the tax year that any gifts to charity are given. It is very unlikely for the majority of people that the tax reclaimed will exceed that which was paid during the year, even if you support a number of charities and give generously and often. If you pay tax at the higher rate, you can claim further tax relief in your Self Assessment Tax Return.
Further information can be found at HM Revenue and Customs website www.hmrc.gov.uk