TAX REFUNDS
As a UK registered
charity, all donations from UK
residents qualify for tax relief. The British Friends will collect the tax
refund on your donation and add this to your gift.
Assuming that the donor is paying tax at the higher level, the benefit of
giving through the Friends is dramatic, the value of the gift is increased by
two-thirds! Compare the difference – a saving of £744
|
|
Donor gives to charity
|
Net benefit to charity
|
Tax gain to charity
|
Tax benefit to donor
|
Tax gain
|
Net cost to donor
|
|
Without tax relief
|
£1,000
|
£1,000
|
£NIL
|
£NIL
|
£NIL
|
£1,000
|
|
With tax relief
|
£1,000
|
£1,282
|
£282
|
£256
|
£538
|
£744
|
Where an individual paying tax at 40% makes a donation of £1,000 to us, we
are entitled to reclaim tax from the Inland Revenue of £282 so that the
charity actually receives £1,282; £1,000 from the donor and £282 from the
Inland Revenue. In addition the donor can obtain a tax repayment from the
Inland Revenue of £256 (20% of £1,282), reducing the net cost to £744