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Threshold Income

Just double/treble checking

Please can someone confirm if threshold income is reduced by gift aid donations?  So for example, if someone has a threshold income of £111k and they made a £1k gross charitable donation under gift aid, their threshold income would be £110,000 so no reduction in pension allowance below the standard £40k if their employer pension contributions were say £50,000.  (I have a real case with bigger numbers where it is critical)

 

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By PBH64
18th Dec 2018 15:18

Work backwards from s228ZA FA 2004 through s23 ITA 2007 and there to s24 ITA 2007. Starting point is net income and that's determined by s24 IT2007

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to PBH64
18th Dec 2018 17:37

,

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By PBH64
to snickersinatwix
18th Dec 2018 16:14

£1k gross charity donation is not gift aid! I'm loathe to put an answer of yes or no down as I don't know all the facts. I've pointed you to Chapter eight of part 3 . s414 sets out gift aid. That allows for making a gift net, the charity claiming basic rate back and the basic rate band being extended. That would suggest that gift aid would not alter the amount. A gift under payroll giving might be another matter as might a gift of shares, securities or real property. If it's all as close to call as your question suggests you should be seeking some proper advice and paying for it? Sorry if that's not what you were after.

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18th Dec 2018 18:23

Search Any Answers for "threshold income".
A reply to HeavyMetalMike's question of 8 Jan 2018 contains the answer to your question.

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to halblackburn
18th Dec 2018 19:06

Thank you very much. So certain "charitable gifts " can be deducted but this does NOT include gifts made under gift aid.

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By PBH64
to snickersinatwix
20th Dec 2018 11:29

You might want to consider looking at payroll giving?

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to PBH64
20th Dec 2018 13:37

Thanks - sadly too late - it is for 2017/18. I had been wondering if we could do a gift aid donation now and carry back, but sadly it looks like we can't.

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