Tax efficient ways of giving

Gift Aid

If you pay UK Income Tax or Capital Gains Tax, St Swithun’s can reclaim from the Government the standard-rate of tax which you have already paid on the donation through the Gift Aid scheme. This currently works out at 28p for every £1 you donate.

If you are a higher-rate tax payer, you will be able to recover the corresponding tax relief on your personal Tax Return. (This is equivalent to tax on the gross value at a rate of 20%, which is the difference between higher-rate and standard-rate tax, i.e. 40%-20%)

Gift	Net cost to Donor (less higher-rate tax)	Gross value to The Bursary (plus standard-rate tax
£1000	£750	£1,282
£7,800	£5,850	£10,000
£23,400	£17,550	£30,000

Stocks and Shares

Donating shares can be a very tax efficient method of giving to St Swithun’s as the example below illustrates:

A Donor donates shares worth £25,000 to St Swithun’s (with a capital gain, after allowances, of £10,000)	£25,000
He/she deducts the £25,000 from annual income liable to tax, thereby saving (assuming a 40% tax rate) £10,000	£10,000 tax saving
He/she saves a further £1,800 on Capital Gains Tax (18% of £10,000) which would have to be paid on selling the shares	£1,800 tax saving
Net cost to donor	£13,200
Total value of Gift to St Swithun’s	£25,000

The School will produce a tax certificate for Inland Revenue purposes.

Legacies

All bequests to charity are exempt from Inheritance Tax (40%). Further information about remembering St Swithun’s in your Will is available from the School.

Company Gifts / Gifts in Kind

Companies can offset donations against Corporation Tax, also through the Gift Aid scheme.

Please contact Simon Mayes if you would like any further information on tax efficient giving.