UK residents can make tax-efficient charitable donations via a number of routes. As well as this, your employer may operate a scheme whereby it will match gifts you make to charities. You can usually find out about these schemes from your organisation’s human resources department.
Gift Aid
Gift Aid is a UK government scheme that enables the University to claim tax relief on donations from UK taxpayers. We would encourage all eligible donors to take up this scheme to maximise their donation. For every £1 a UK taxpayer donates, 25p in reclaimed tax is added. This means that a £100 gift with Gift Aid is worth £125 to the University.
Please note that we will share relevant and necessary data with HM Revenue and Customs to enable us to reclaim the Gift Aid on your donation.
Donations from companies are not eligible for Gift Aid. However, the company can treat the gift as an allowable expense, making a saving on corporation tax.
Payroll giving
UK taxpayers who are paid under PAYE (Pay As You Earn) can maximise regular donations to the University through payroll giving. Gifts made through this scheme are taken directly from the gross pay, giving the benefactor immediate tax relief at the highest rate of tax for which they qualify.
If you are a UK taxpayer and are interested in this method of giving, please request an application form from your employer, detailing your wishes to donate to the University of Oxford Development Trust Fund. The employer will then deduct a gift directly from your salary before tax is applied. To give on PAYE please visit the Payroll Giving in Action website (see bottom of page).
Giving stocks and shares
Share giving is the most generous tax relief available to benefactors, combining relief on income and capital gains tax. In the UK, share gifts qualify for tax relief equal to the market value of the shares on the day the gift is made, including associated costs such as broker fees. The tax relief can be claimed for the year in which the gift is made.
For example, a gift to the University of Oxford of £1,000 worth of shares, made by an individual who is a higher rate taxpayer, would reduce their income tax by up to £500 for the year. Additionally, the benefactor would not have to pay any Capital Gains Tax (CGT) on any increase in the value of the shares since they were bought. If the shares have gone down in value, however, it is not possible to use this loss to offset any other CGT liabilities.
Donors wishing to give shares to the University can complete and mail us the UK share giving form. Donors wishing to give shares to a college should contact the college directly.
Legacies and reducing inheritance tax
Gifts to charity are exempt from Inheritance Tax (IHT) in the UK, and the government provides a further incentive when you leave 10 per cent or more of your net estate to charity.