Today we’re relieved that UK Chancellor Kwasi Kwarteng has promised to protect Gift Aid donations from the impact of the income tax cut announced in his mini-budget.
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Gift Aid: if you are a UK taxpayer,[mfn]sorry if you’re not! However, you may be eligible for charity tax deductions in your country. If you’re a US citizen, click the fifth heading here. [/mfn] donating through Gift Aid means PET can reclaim an extra 25p for every £1 you give, and it won’t cost you any extra money! This transitional relief for the charity — by the UK.GOV out of your annual income tax payment — does not affect your personal tax position.
So please (i) keep on giving[mfn]do please consider to keep giving regularly to PET — even after 2027[/mfn] and (ii) sign up for GIFT Aid. Thanks. PET can really use the extra 25% !
Kwarteng told parliament the basic rate of income tax would fall from 20 per cent to 19 per cent next year, while the top rate would fall from 45 per cent to 40 per cent.
The post-announcement documents revealed that the government will cover any subsequent shortfall in Gift Aid donations for four years – likely to cost £300m.
The Treasury papers state: “A four-year transition period for Gift Aid relief will apply, to maintain the income tax basic rate relief at 20 per cent until April 2027.”
The Charity Tax Group said: “We are pleased that the government has maintained Gift Aid at its current level until April 2027, following income tax being reduced to 19 per cent a year earlier than originally planned. … Charities will have time to prepare for this change.”
For more on Gift Aid click here.
PET is always very grateful for your gifts to help support its work on behalf of the Park Ecovillage, Findhorn. Click
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PET hugely thanks ALL its donors for co- manifesting the basic Findhorn values and 3Principles: