Gift Aid increases the value of your donations by allowing the College to reclaim basic rate tax on your gift.
The scheme applies to gifts of money by individuals who pay UK income and/or capital gains tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. The College reclaims the basic rate tax from HM Revenue & Customs (HMRC). The basic rate of income tax is 20 per cent, so £1,000 donated using Gift Aid is worth £1,250 to the College.
If you are a higher rate taxpayer then you can claim additional tax relief on your donations. HMRC will increase your tax-free allowance by the difference between 20% and 40%, or 45%, depending which rate of tax you currently pay.
The follow table highlights the next costs to donors and the gross benefit to the College:
|Single Gift||Net Cost to a 40% Tax Payer||Net Cost to a 45% Tax Payer||Gross Benefit to Dulwich College|