 |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
 |
||||||||||||||||||||||||||||||||||
 |
||||||||||||||||||||||||||||||||||
|
The Radley Foundation has charitable status, which allows both individual and corporate supporters to make tax-efficient gifts, either as a lump sum or spread over a number of years. Making a gift of any size using the Gift Aid scheme enables the College to reclaim from the Government the basic rate of tax on a gift (currently 20%), which will already have been paid by the donor. The Government announced at the March 2008 Budget a transitional relief for charities using the Gift Aid scheme meaning The Radley Foundation will continue to receive a total of 28 pence per pound donated for the next three years despite the reduction in the basic rate of tax from 22% to 20%. Ultimately, this will mean that the Foundation's income from Gift Aid will drop in line from 28 pence per pound to 25 pence per pound. However, this period of transition will help us to prepare for this change. Until April 2011 the Government will make up the difference (3 pence in every pound) in 'transitional relief'. This means that your gift of £500 will continue to be worth £641 to the College until 2011. What about Higher Rate donors? Donors who are liable at the higher rate of income tax can, additionally, claim tax relief for the difference between the higher rate and the basic rate of income tax via their Self Assessment tax return. For Gift Aid donations made on or after the 6 April 2008, higher rate donors can claim an extra 20% (the difference between the basic rate of 20% and the higher rate of 40%), thus reducing the cost to the donor of making a gift to the Foundation. To make a gift to Radley, please click here. Gifts of appreciated Shares and Securities Here it is the donor, and not the recipient, who can achieve large tax savings; savings not only on capital gains tax, but on income tax as well. All donations of shares to charity now receive income tax relief of 100% of their market value. This means that if you give shares worth £100,000 to Radley, you will receive income tax relief based on this in full, i.e. £40,000 at the higher rate of tax. This relief applies whether it is an individual or a company disposing of the shares. The donor can deduct the market value of the shares or securities on the date of disposal plus any incidental costs of disposing of the shares (broker's fees etc.) less any consideration given in return for disposing of the shares and the value of any other benefits received by the donor, or a person connected with the donor, in consequence of disposing of the shares. Donors will claim the tax relief, at their top rate of tax, on their Self Assessment or Corporation Tax return. The only requirements to make such a saving are that donors must:
In addition to the income tax saving, donors making gifts of shares to Radley will not attract any capital gains liability. If a tax payer makes a gift with £100,000 worth of capital gains (after indexation, taper relief and the annual exempt amount) to charity, there will be no capital gains tax on this gift, a potential saving of £40,000. Together, these mean that a tax-payer making a gift of £200,000 (with a capital appreciation of £100,000) could pay as much as £120,000 less in tax compared with a non-charitable disposal. A truly great saving. To see an example of how to give £50,000 to Radley and save yourself £24,000, please click here. To see an example of how to give £100,000 to Radley and save yourself £63,000, please click here. If you wish to make a gift of appreciated shares or securities, please contact
|
||||||||||||||||||||||||||||||||||
