Giving to Charity
HMRC have updated the area of its website concerned with gifts and donations to charities. This section has been designed to help businesses and individuals to make tax efficient donations. The main areas covered are as follows:
– Gifts of money to charities by partners and sole traders – These reliefs are claimed using income tax self-assessment.
– Gifts of money to charities by companies – There are special rules where there is a benefit to the company or a connected person.
– Companies gifting land, building or shares – includes sale at less than market value and the reliefs available.
– Companies or Partnerships gifting equipment, trading stock or staff time.
– Sponsoring a Charity – also includes the VAT implications where a company receives or is deemed to receive something from a charity in return for sponsorship.
– Payroll Giving – How to help your employees make donations from their wages.
The categories of guidance include Gift Aid, Payroll Giving and donating company equipment, trading stock and employees providing assistance to charities.