It is said that charity benefits the giver more than the receiver. While this may be true spiritually, a big heart can mean an empty wallet. There is some comfort for the donor; the latest figures show that donors receive almost £1.5bn in tax relief each year, and recent changes to the income tax calculation have increased the opportunities for planning around Gift Aid donations.

Gift Aid in a nutshell

Broadly, where an individual gives money to a charity or a community amateur sports clubs (CASCs), and a Gift Aid declaration is made, the gift is a Gift Aid donation (Income Tax Act 2007 (ITA 2007), s416).