Individuals receive income tax relief on donations they make to charities. There are three ways in which an individual can obtain income tax relief on cash donations to charity: by gift aid (also known as gift aid relief), by direct deduction from salary under payroll giving and by the retail gift aid scheme.

For details of income tax relief available for non-cash donations, see the Gifts of quoted shares and land to charity guidance note.

Note that donations to charity are not included in the cap on unlimited income tax reliefs. See the Cap on unlimited income tax reliefs guidance note for more information.

Meaning of 'charity'

Donations from 6 April 2010

The definition of charity was significantly altered by FA 2010, extending UK income tax reliefs to charities based overseas in 'relevant territories' (ie countries in the European Economic Area). The EEA is comprised of the EU Member States plus Norway, Iceland and Liechtenstein.

Access this article and thousands of others like it free
for 7 days with a trial of TolleyGuidance.

ACCESS THE FULL ARTICLE

Already a subscriber? Login

Request a Free Trial to TolleyGuidance to gain access to the full article

Access this article and thousands of others like it free for 7 days. Written exclusively by tax professionals for tax professionals, TolleyGuidance combines tax technical commentary with practical guidance to support you day-to-day.

* denotes a required field