STOP PRESS
We have set up a new online donation facility for TWOAT using CAF donate – please visit our page here https://cafdonate.cafonline.org/22337
Other methods ofSTOP PRESS We have set up a new online donation facility for TWOAT using CAF donate – please visit our page here https://cafdonate.cafonline.org/22337 donating to TWOAT include transferring money directly to our bank account or sending a cheque made out to TWOAT to our Treasurer Antony Hawker at The Holt, Alcocks Lane, KT20 6BB. You can see how to download a Gift Aid and Standing Order form below – this form includes details of TWOAT’s bank account. If you have not previously done so and you are a UK tax payer, it would be very helpful to us if you are able to complete the Gift Aid Declaration form and return it to Antony Hawker. He can use your declaration to claim an additional 25% to be added to your donation by the UK government which is effectively refunding the taxes you have paid on the amount you have donated. VMG’s services to charities have previously included processing Gift Aid claims on their behalf for the donations made via VMG.
If you have not already given us a Gift Aid form please email Mike.Fox2@NTLWorld.com to obtain one or download our Gift Aid and standing Order form
STANDING ORDER AUTHORITY & Gift Aid 2020
The Charities Aid Foundation CAF acts as both a charity and a bank. They can facilitate your charitable giving by claiming Gift Aid on your behalf and adding it to the funds that they hold for you before passing them to charities of your choice. If you set up a CAF account then you can utilise their online facilities to donate directly to TWOAT. For further details of CAF visit here:
Inheritance Tax Example
If you donate to charities at least 10% of the value of your estate after Inheritance Tax (IHT) allowances, then not only is that 10% not subject to IHT but also the remaining 90% is taxed at a reduced rate of 36% as compared with the normal 40%. As an example, if you are a couple with a home worth in excess of £350k, which you leave to direct descendants, then your joint allowance before your estate pays IHT is £1m. So, say your estate is worth £1.5m then the net value £500k is subject to IHT at 40% totaling £200k. However, if your Will gifts 10% of the net value of your estate, in this case £50k, to charity then the remaining £450k is only taxed at 36% = £162k. After subtracting the £50k for the charities your heirs will still receive £1,288,000 instead of £1.3m a reduction of only £12k, less than 1% difference, whilst charities have received £50k. Of course, if you were already planning to give a few thousand pounds to charity, which would not trigger the reduction to 36%, then the difference for the other heirs would be even smaller. This lesser known tax concession is potentially many times more valuable to charities than the better known Gift Aid and you can of course include any number of charities to receive a share of the 10%. I should add a word of caution that governments can vary the tax regime whenever they wish, as long as they can get parliament to approve the changes, and you would be wise to take professional advice in matters such as Wills. But if you would like to find out more about supporting TWOAT in this very tax-efficient way, please contact our Treasurer Antony Hawker TWOAT@ecit.uk