Gift Aid > Other Tax-Efficient Giving > Company Giving

Company Giving

From 1st April 2000 the rules applying to companies who donate to charity changed.  Now, Gift Aid for companies is based on corporation tax, with the company getting the tax relief.

For corporate donations, the company gives the gross amount and reclaims tax at the relevant rate. For example, if a company pays corporation tax at, say, 30% and wants to donate £10,000 they calculate that the tax due for that donation would be £3,000. They then make a donation to the charity of £13,000 and claim back the £3,000 tax at a later date.

The church cannot reclaim tax on any donations received from a company on or after 1st April 2000. (Note 1st April, not 6th). This applies even where a Deed of Covenant was in effect after 1st April.