From: "Martin" 
Newsgroups: uk.finance
Subject: Re: Gift aid
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Date: Thu, 26 Jul 2007 15:36:06 GMT
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"GSV Three Minds in a Can"  wrote in message
news:xFaMTrA0mKqGFAkU@from.is.invalid...
> Bitstring , from the wonderful
> person Martin  said
>>
>>"GSV Three Minds in a Can"  wrote in message
>>news:gCN4iqAn39pGFAuu@from.is.invalid...
>>> Bitstring , from the wonderful
>>> person b.  said
>>>>Hi,
>>>>I am self employed basic rate tax payer.
>>>>I have made several charitable donations.
>>>>Although not a concern to me, I am unable to understand
>>>>from my readings, how such donations reduce my overall tax liability.
>>>>Am I correct ?
>>>
>>> At basic rate tax levels they don't .. the charity can just claim
>>> 22/78ths of what you gave them back from the government. At higher rate
>>> tax levels  you see a benefit (equivalent to the government increasing
>>> your basic rate  band by the amount you gave away, gross, i.e. 100/78 of
>>> what you really  handed over).
>>>
>>> By concession, even if you don't actually pay 22% tax, the charity still
>>> claims it back.
>>
>>Only if the donor has made a false declaration that s/he is BR taxpayer.
>
> Nope, AIUI the donor just has to have paid enough tax to cover what the
> charity/ies reclaims, they do NOT have to be a BR tax payer. They can get
> there via the 10% band, or the 20% band on interest income, or capital
> gains tax, or whatever -  see:
>
> http://www.hmrc.gov.uk/charities/gift-aid.htm
>

Oops, sorry - you're right.  I think I thought you'd said words to the
effect that the charity can reclaim even for gifts from non-taxpayers. Which 
you didn't.  I'm off for a brain-hunt and a reading lesson... :-(

-- 
Martin
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