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 £750.

The chart below illustrates how tax efficient it is to give through the British Friends for a UK tax payer:

40% taxpayer	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 (£250 plus additional £32)	£250	£532	£750

Where an individual who is paying tax at 40% makes a donation of £1,000, the British Friends reclaims tax from HM Revenue & Customs of £282 so that the charity receives £1,282; £1,000 from the donor and £282 from the Revenue (including an additional £32 so that the charity does not lose out from the reduction of the basic rate from 22% to 20%). In addition the donor can currently obtain tax relief on his/her self assessment of £250 (20% of £1,250), reducing the net cost to £750.

Tax effective giving for US and dual registered (UK and US) tax payers

The British Friends is now approved by the CAF Donor’s Fund Eligibility Committee to receive grants. For dual US-UK tax payers giving through the CAF American Donor Fund allows donors to get a tax deduction in both the US and UK. Donor can give through the CAF American Donor Fund if they pay tax in both the UK and US and if earnings exceed the worldwide foreign-earned income threshold (currently $80,000).

For more information and Gift forms see the below website link, or request information from the British Friends of HBS (e-mail: dwilson@aifs.co.uk)

http://www.cafonline.org/default.aspx?page=7141&btnServices=&