Turcan Connell is heavily involved in assisting philanthropists to give to charity in the most tax efficient way possible. Donations to charity and to Community Amateur Sports Clubs attract relief from tax if the relevant conditions are met.

Methods of giving in a tax efficient manner are varied and include donations under the Gift Aid scheme, which can enhance a donation to charity by 25% and reduce the cost to the donor further through additional tax reclaims where the donor is a higher or additional rate taxpayer. Payroll giving is another option for some donors where their employer or company operates a payroll giving scheme.

Donations to charity need not be donations of cash in order to be tax efficient – the government also incentivises gifts to charity of land, property and shares. This can create a deduction for the donor against that year’s tax bill and can provide the recipient charity with an asset which it can then use or sell to produce cash for further charitable work. It is also possible in some limited cases to give chattels (items of furniture, furnishings or personal effects) to charity in a tax efficient way.

Corporate Gift Aid is a means by which gifts can be made by companies to charity, while also securing a deduction against their Corporation Tax bill.

When considering making a gift to charity it is important to ensure that any rules about tax efficiency are properly met. Speak to our Charities Legal Team for advice on how to structure your proposed charitable giving in the most tax efficient way possible.