My client will have a large one-off higher-rate tax liability in 2007/08, and wishes to make a large charitable payment. With the recent budget changes, should they make the payment before 5 April 2008, or after 5 April 2008 and do a carry-back?
Neil Robinson
Replies (3)
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Actually
It probably won't matter either way from the charity's point of view. The Budget this week included the facility for charities to claim an additional 2% as transitional relief for the next 3 years so they won't lose out with the basic rate changing.
I might just be highlighting...
... my lack of intelligence here, but surely they would get 20/80 after 6 April 2008?
Don't get me wrong, it's still more for the charity for the same amount from the client, but I want to make sure I am doing it right!
think of the charity
If the donation is made before 6 April and is made under gitt aid the charity will recover 22/78 ths rather than 20/78 ths of the donation - and that is just over 2.5%!