Taxpayers 'failing to claim relief on donations'
Charities
11th January 2010
Charity donors who pay high levels of income tax have been advised that many are missing out on millions of pounds each year in relief, as are the causes they support.
According to a study by the Charities Aid Foundation (CAF), such people claimed £280 million in tax relief during 2008-09, but failed to apply for an estimated £250 million.
Under current legislation, higher-rate taxpayers can claim back the difference between 20 per cent and 40 per cent levies paid on donations or give it to the charity, meaning that third sector organisations could receive £160.20 for each £100 donation made.
The warning from the CAF has been issued ahead of the January 31st deadline for self assessment tax returns and the body's head of private clients Mike Packham criticised the "complexity of the process" for claiming money back.
Charities seeking a UK insurance policy may also be interested to note that recent data has indicated a dip in donations during the downturn, although Coutts & Co reported that gifts of £1 million and more had remained "resilient" in spite of the recession.
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