Since 2007, The Rifles have suffered more casualties than any other regiment, with 54 killed in action, and over 290 seriously wounded – of whom 26 have lost limbs; three have lost three of their limbs each, and for eight it has been two limbs. Two men are fully blinded and three are in neurological units.

The need for the regiment’s Care for Casualties appeal is all too clear. Not surprisingly, there is a call for donations by cheque or bank standing order. Attention is drawn to a note which says: “The cost to a 40% and 50% taxpayer able to Gift Aid and reclaim higher rate tax relief for say a £1000 gift is £600 and £500 respectively.” For an individual on the top rate of tax of 50% that reads as though a cheque for £1000 will only cost £500 after tax relief. But that is not so.

In this example, the charity will be claiming £250 from HMRC, on top of the £1,000 cheque, and the net cost to a 50% taxpayer is £625. (The charity recovers 20% and the donor recovers 30% of the grossed up figure of £1,250).

Where the quoted figures do hold good is in the case of a gift deducted as part of an approved scheme from salary. Here, the gift comes from gross earnings, and so no tax is paid in respect of those earnings. The charity simply receives the gross amount  and cannot any tax claim to that.

You can leave a comment, or trackback from your own site.