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From April 6th a new higher rate of tax will be payable for individuals earning over £150,000 annually.

For individuals paying the new higher rate of tax, the cost of giving will be substantialy lower. An individual can potentially claim back the difference between their highest rate of tax (50%) and the basic rate (20%) that has been or is being claimed in Gift Aid by a charity. For example on a £100 donation, the individual could potentially claim back £37.50. The claim in made in exactly the same way as a 40% taxpayer would claim their relief.

For payroll giving, any donation would cost 50% less, so a £10 per month gift would only cost the individual £5.

For gifts of shares, the potential income tax relief available will be 50%. For example, on a donation of shares worth £10,000 the potential tax relief is £5,000.