Higher Rate Tax Relief

Higher Rate Tax Relief
Note also that if you are a higher or additional rate taxpayer then you can claim additional relief via your annual tax return, making the net cost to you even lower. For example, if you pay tax at 40%:

  • You make a donation to the church of £1000.

  • The church reclaims the equivalent of the 20% basic rate of tax on this donation, which is 25% * £1000 = £250. So the church receives in total £1250

  • Since you are paying tax at 40%, you have actually paid £500 tax (40% x £1250) on this this "grossed up" amount

  • You can therefore reclaim higher rate tax relief via your tax return. The relief is the difference between the tax paid on your donation (£500) and that reclaimed by the church (£250), so amounts to a further £250. This has the effect of reducing your overall tax bill by £250 and the money is either repaid directly to you or deducted from your following year's tax bill by adjusting your tax code. Hence the overall cost to you of your gift is £1000 - £250 = £750, but the church has received £1250.

If you are not a Planned Giver, please would you consider becoming one?

Click here for a form to register your interest in making a Planned Giving pledge (pdf file)

Click here for the Gift Aid Declaration form (pdf file)

Please return completed forms to:

Richard Burdett
PCC Treasurer
30 Mallow Park