Don't Forget the Tax Benefits on Charitable Donations; LEGAL FINANCE
Black Country law firm George Green is reminding its clients of the tax benefits available on charitable donations.
It follows the debate over taxation and charitable giving heating up in the election for the Deputy Leader of the Labour Party.
Party chairman Hazel Blears has called for generous tax incentives to encourage investment by high earners and wealthy businessmen in sport and the arts,
"Higher rate tax earners can use charitable giving to offset against income tax, while inheritance tax liability can be reduced or removed," said Neill Robb, partner in George Green's private client department.
"Charitable gifts also allow the tax payer to do some genuine good for worthwhile causes, helping poor communities, sport, the arts, or whatever area interests them.
"Gifts out of taxable income qualify for Gift Aid which allows the charity recipient to claim back basic rate tax, so as to 'gross up' the value of the gift. For the giver the tax benefit occurs only for higher rate payers, who can offset the difference between the two rates. …