The Ipswich School Foundation is a registered charity making it possible, if you pay UK Income Tax, to boost the value of your donation and reducing your tax liability at the same time.
Gift Aid
Donors can make payments, large or small, regular or one-off to the Ipswich School Foundation under Gift Aid. The donor simply signs a declaration, which should be in writing and confirms that they will pay an amount of income or capital gains tax equal (or greater than) to the tax the Foundation claims on their donations.
Basic rate of tax – Gift Aid allows the Foundation to reclaim the basic rate of tax (currently 25%) on the grossed up donation from the Inland Revenue.
Higher rate of tax - Donors who are liable to pay the higher rate of income tax can claim the difference, currently 20% [40% - 20%] on the grossed up donation in their annual tax return.
Example:
|
Net cost to donors |
Made up of donation |
And higher rate tax relief |
The Foundation claims Gift Aid of |
The Foundation receives a total of |
|
£75 |
£100 |
£25 |
£25 |
£125 |
Regular giving – A commitment is undertaken to make annual, quarterly or monthly payments for an agreed period of time.
Example:
|
Annual Pledge |
Number of years |
Total donation |
Cost to donor |
Donation plus Gift Aid to ISCT |
|
£1000 |
5 |
£5000 |
£3750 |
£6250 |
Donating Shares
Recent changes in legislation make this one of the most attractive methods of maximising the benefits to the Foundation and minimising Capital Gains Tax liability to the donor.
Not only are donated shares free of Capital Gains Tax but the market value can now be offset against the donors Income Tax liability.
For a higher rate tax payer whose Capital Gains Tax annual exemption has already been used up for the year, the incentives are enormous, particularly if the value of the donated shares is substantially higher than at acquisition.
Example:
|
Purchase price of shares |
Now worth |
The Foundation receives |
Income Tax relief to donor |
Capital Gains Tax relief to donor |
|
£10 000 |
£25 000 |
£25 000 |
£10 000
(40% x £25 000) |
£6 000
(40% x £15 000) |
|
True cost of donating shares with a market value of £25 000 = £9 000 (£25 000 - £10 000 + £6 000) |
Payroll Giving
Payroll Giving is a very easy way to give money to Ipswich School. All that is needed is to ask your employer to make a regular donation on your behalf to the Foundation before calculating PAYE Tax. The donation, under Payroll Giving, is therefore paid out of pre-tax income.
Company Giving
If you are in a position to make a donation through a company, one may find this the most advantageous way of supporting Ipswich School. The Company simply makes a donation and then claims tax relief when calculating profits for corporation tax. Donations can also be made over a period of time.
Transfer of Assets
Donations of Capital Assets, including shares, can be made directly to Ipswich School without the donor incurring a liability for Capital Gains Tax or Inheritance Tax and no tax would be payable by Ipswich School if the value of the asset were subsequently realised.