Donations - Tax relief when you donate to the Newfoundland Canine Trust
Donations by individuals to our charity are tax free. This is called tax relief. The tax goes to you or the charity. How this works depends on whether you donate:
- In the form of a bequest/legacy in your Will - see our page on Legacies
- Through Gift Aid
- Straight from your wages or pension
- Through a Payroll Giving scheme
- Land, property or shares
One-time Gifts
You can contribute online, donate at an event or send in a cheque to help fund our purpose in helping Newfoundlands in need.
Income Tax Relief
You can pay less Income Tax by deducting the value of your donation from your total taxable income. Do this for the tax year (6 April to 5 April) in which you made the gift or sale to charity.
- How to claim
If you complete a Self Assessment tax return, add the amount you are claiming in the 'Charitable giving' section of the form. This will reduce your Self Assessment bill.
Gift Aid
Donating through Gift Aid means charities and community amateur sports clubs (CASCs) can claim an extra 25p for every £1 you give. It will not cost you any extra. Charities can claim Gift Aid on most donations, but some payments do not qualify and this should be checked with your financial advisor before making the donation.
- What you need to do
You need to make a Gift Aid declaration for the charity to claim. You usually do this by filling in a form - contact the charity if you have not got one. You must give a declaration to the charity you want to donate to.
- Paying enough tax to qualify for Gift Aid
Your donations will qualify as long as they're not more than 4 times what you have paid in tax in that tax year (6 April to 5 April). The tax could have been paid on income or capital gains. You must tell the charities you support if you stop paying enough tax.
Donating straight from your wages or pension
If your employer, company or personal pension provider runs a Payroll Giving scheme, you can donate straight from your wages or pension. This happens before tax is deducted from your income. Ask your employer or pension provider if they run a Payroll Giving scheme.
The tax relief you get depends on the rate of tax you pay. To donate £1, you pay:
- 80p if you’re a basic rate taxpayer
- 60p if you’re a higher rate taxpayer
- 55p if you’re an additional rate taxpayer
Donating land, property or shares
You do not have to pay tax on land, property or shares you donate to charity. This includes selling them for less than their market value. You get tax relief on both:
- Income Tax
- Capital Gains Tax
NCT Charity Auctions
When the retail value of an item bought in a charity auction exceeds the benefit limits, you cannot claim Gift Aid. It is possible for the donor’s payment to be split between an amount to 'buy' the item and an amount that can be treated as a gift. To do this the value of the item auctioned is subtracted from the amount paid. The remainder is treated as a donation that can qualify for Gift Aid. You must make the value of the item clear to bidders at the auction before each item is sold. For an item that’s not commercially available, supporters at a charity auction may pay more than its retail price to increase their donation or because the item is unique. The commercial value of a football shirt, for example, is increased if it's signed by the football team. The benefit for Gift Aid purposes is the amount it fetches in the auction. The benefit is calculated as follows:- Up to £100 - 25% of the donation
- £101 + - 25% of £100 plus 5% up to a total value of £2,500
When the donation exceeds the benefit limits
When the value of the benefit exceeds the limits in the donor benefit rules, the donor can 'buy the benefit'. For the donor to 'buy the benefit, and enable us to claim Gift Aid, we would make them aware of the retail cost of the item (the value of the benefit) and that they can buy the item elsewhere when they make their successful bid (donation). This 'excess donation' qualifies for Gift Aid. In some cases, our supporters can bid on services that donors promise to carry out for successful bidders, like grooming or day care. To be eligible, the amount that the successful bidder pays for the ‘promise’ is the same as the value of the benefit. If a 'promise' is commercially available, the value of the benefit is the same as its retail price.
About our Charitable status
The Newfoundland Canine Trust is registered with the Charity Commission as a CIO (Charitable Incorporated Organisation). Our Registered Charity No. is 1196059. We are a Foundation Model, where the only members of the CIO are its trustees. We have:
- A constitution as our governing document
- Registered the CIO with the Charity Commission for it to legally come into existence
- Keep a register of our members and trustees
- Send our accounts and annual return to the Charity Commission each year, regardless of our income
What charitable incorporated organisations (CIOs) like ours need to submit:
We must answer questions about our charity in our annual return and include copies of our:
- Trustee Annual Report
- Accounts (if our income is over £25,000 we also need to get our accounts checked and submit a copy of the independent examiner's report)