Tax-efficient
charitable donations
to Winchester College
2018 opened on a
positive note, with
global economic growth
powering ahead and
stock markets around
the world showing
signs of the ‘Trump
Bounce’. Now might
be an excellent
time to consider
making a charitable
donation and to take
advantage of the tax
breaks available
Gift Aid
If you wish to make a one-off
cash donation, claiming Gift Aid
is an easy process and allows us to
reclaim from the Inland Revenue
the basic-rate tax on donations
made by UK taxpayers.
Furthermore, higher rate and
additional rate taxpayers can also
54 The Wykeham Journal 2017
claim tax relief of 20 or 25% of
the gross amount of the donation
via their tax return, meaning that
the donation costs them even less.
There are no longer any restrictions
on the size of a charitable gift, but,
for it to qualify for Gift Aid, you
must pay at least as much income or
capital gains tax in the same year as
the amount we will be reclaiming.
Stocks and shares donations
You can also donate shares and
other UK registered assets to us
and claim two separate tax reliefs:
first, you will not be liable for tax
on any capital gain in the value
of the asset at the time of the
donation; and, secondly, you can
offset the value of the gift, plus
any other costs involved in the
transfer, against your income tax
at your highest marginal rate via
your tax return.
Legacies
The value of a legacy to us is
deducted from your estate before
inheritance tax is calculated, thus
reducing the net cost of the gift
to your other beneficiaries by
40%; and estates where a total of
at least 10% is left to charities pay
a reduced rate of inheritance tax
of 36% on the taxable balance.
The Hong Kong Friends of
Winchester College
Donors who live in Hong Kong
can give tax efficiently through the
HKFWC as it is a registered charity
under the Hong Kong Inland
Revenue Ordinance. All donations
to Winchester College made
through The Friends will qualify
in Hong Kong as a charitable
donation for tax purposes.
The American Friends of
Winchester College (AFWC)
Donors who pay tax in the
USA can give tax efficiently
via the AFWC. The AFWC
is incorporated in the State of
Delaware and has 501(c)(3) status,
EIN 31-1706064, from the
US Internal Revenue Service.
Therefore, the fund pays no
tax on its income, donations
made by US taxpayers are
tax-deductible, US foundations
can make qualifying gifts to
the AFWC and donors can
give appreciated stock.
If you pay tax in the US and
the UK then there are ways of
benefiting from the tax breaks
in both these countries.
For further information please
contact Winchester College Society.