Excluding a lump sum paid in 2011-12 on a deferred state pension, an individual has in 2011-12 total gross income of £10000 against which he has a personal allowance of £9940, leaving a balance of £60 taxable. Consequently, taking that year in isolation, on those facts alone he is liable to tax at basic rate on the lump sum. So far so good.
Q1: Had his circumstances been very slightly different than the above, in that he had also made a payment of £80 net (£100 gross) under gift aid in 2011-12, do all y'all agree that his marginal rate of tax would have been 0% (there would have been a small clawback of gift aid tax) and in consequence the rate of tax to be applied to the lump sum would have been 0%?
Q2: If you agree with my assertion in Q1, would a gift aid payment made in 2012-13 and carried back to 2011-12 be also effective in reducing the rate of tax applicable to the lump sum pension from 20% to 0%?
With kind regards