Member Article

Government urged to step up benefits of charitable tax breaks

The head of a Sheffield law firm’s charity department is calling for the Government to highlight the benefits of existing tax breaks to increase charitable donations.

Michele Todd, partner in the private client team at hlw Keeble Hawson, has welcomed proposal for UK businesses to be given more incentives to donate to charity following the publication of the Charities Aid Foundation’s (CAF) Growing Giving Inquiry.

The investigation, led by Sheffield MP David Blunkett, was launched after it was revealed there has been a five per cent decrease in households donating to charity between 1978 and 2010.

However, Ms Todd, who is also a trustee of Weston Park Hospital Cancer Charity, Sheffield, believes the poor publicity of current tax incentives for those wishing to donate is one of the reasons why donations have fallen.

“I noted with interest CAF’s report but there are already some tax-effective ways to encourage the UK tax payer to donate to charities. These include claiming back Gift Aid at 20 per cent and 40 per cent if a higher rate tax payer. For any tax payers wanting to make a substantial donation, the present tax-efficient measures should not be overlooked,” she explained.

The CAF report suggests that charitable giving can be boosted by introducing ‘Living Legacies’ which will allow donors to leave a legacy to charity while they are alive in return for a tax break. Other options include giving companies incentives to match fund donations by employees as well as setting up “giving circles” in the workplace.

Ms Todd added that tax relief can also be claimed on gifts left in a will providing 10 per cent of an estate which is subject to Inheritance Tax is left to a UK charity.

For further information about how to make the most of charitable giving, contact Michele Todd on 0114 2906207 or micheletodd@hlwkeeblehawson.co.uk

This was posted in Bdaily's Members' News section by hlw Keeble Hawson LLP .