Tax-Efficient Giving

Gift Aid is a scheme promoted by the UK government to incentivise charitable giving. It allows King’s to reclaim a sum equivalent to the basic income tax you would have paid on the money used to make a gifts or gifts in any given Tax Year, so long as you have paid an equal or greater amount of income tax.

If you are liable for income tax at higher brackets, you can also claim a personal tax relief equivalent to the difference between the rate you pay HMRC and the basic rate of 20%. The example below gives the tax rated applicable for England, Wales and Northern Ireland. There are different rates in Scotland which will affect the tax relief available.

For further details about other qualifying donations, please see the Government website. 

UK taxpayers who are paid under PAYE (Pay As You Earn) can maximise regular donations to the College through payroll giving, also known as GAYE (Give As You Earn). 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 King’s College Cambridge. The employer will then deduct your gift directly from your salary before tax is applied.

Share giving is one of the most generous tax reliefs 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.

You will need to complete a stock transfer request and inform the College that you instigated this transaction. Alternately you can sell the shares and donate the proceeds, and claim the relief provided an agreed process is recorded with the College’s agreement. Please do contact us first if this is your preferred path.

Gifts of art, antiques, important documents, musical instruments and other valuable items may also attract both income tax and capital gains tax relief. If you intend to make a gift of this nature to the College, please do contact the Development Office to ascertain if it can be accepted. Due to the constraints of space, the College must exercise discretion in which gifts can be accepted, and reserves the right to sell donated items for the College’s charitable purposes.

For more information see the Government's website.

Several non-profit companies exist to provide charitable accounts which allow you to deposit cash and make regular donations to charities of your choice in a tax-efficient manner. We work most often with the Charities Aid Foundation, but several other national and regional organisations offer similar services.

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, which may reduce the overall rate of IHT for your whole estate.