Gift Aid and tax efficient giving
If you are a UK taxpayer, you can make your annual subscription/donation go even further by making it subject to Gift Aid at no extra cost to you.
A Gift Aid declaration enables Glyndebourne to reclaim tax on the charitable donation. In addition to the 25p per £1 that Glyndebourne claims from HMRC, the Government will add an extra 3p so that Glyndebourne receives 28p for each £1 donated under Gift Aid between 06 April 2008 and 05 April 2011.
To be eligible to Gift Aid what you pay in UK income tax and/or capital gains tax must at least equal the tax that all charities you donate to can claim on your donations in the tax year.
Please note that donations from companies are not eligible for Gift Aid. Gifts made with Charities Aid Foundation (CAF) vouchers have already had Gift Aid claimed on them by CAF and passed to the charity, so further Gift Aid cannot be claimed.
If you currently Gift Aid your contribution and your circumstances have changed - or if your subscription is paid by someone other than yourself - please contact:
Rosalind Keeley, Operations Manager
Phone: +44 (0)1273 815413
If you are eligible to Gift Aid simply download and complete the Gift Aid declaration and return it to:
Membership & Development
Tax advantages of leaving a gift in your will
The tax system encourages people to support charities like Glyndebourne. During our lifetimes Gift Aid is a means by which the government supplements gifts to charity and provides further encouragement in the form of higher rate income tax relief. This carries on beyond death. If you leave a legacy to a charity then that legacy is exempt from inheritance tax (IHT). As a starting point the value of your estate is subject to a 40% IHT charge, but legacies to charities are exempt, so that the government effectively contributes 40% of any gift.
Since last year this relief has become even more generous: if (broadly speaking) you leave 10% or more of the value of your taxable estate (i.e. after the nil-rate band) to charity, not only is the gift itself exempt from IHT but the remaining estate is subject to IHT at 36% rather than 40%. The application of this reduced rate will not generally result in other beneficiaries receiving more than if no charitable legacy had been made. However, it does provide an even more tax efficient means of giving.
There may also be a tipping point where if your proposed charitable legacies are close to the 10% threshold, your beneficiaries will be better off if the threshold is reached. For example, assuming a taxable estate of £675,000 (i.e. an estate of £1,000,000 before the nil-rate band), if a legacy of 10% is left to charity then beneficiaries will be left with £713,800 following the application of inheritance tax at 36%. However, if a legacy of 7% is left to charity then beneficiaries will be left with £701,650 following the application of inheritance tax at 40%.
So, if you are contemplating a significant level of charitable legacies; this relief may (if you take as your starting point your estate after initially proposed legacies and the IHT on that net-amount) actually benefit your other beneficiaries too.
Inevitably the rules are more complex than this brief summary might suggest and anyone thinking about taking advantage of this enhanced relief should take appropriate advice around its effect on their estate and the correct drafting of their will. However, the take home message is clear: The tax system encourages us to support charities like Glyndebourne even beyond the grave.
We always recommended that you ask your solicitor or other professional adviser about the best ways to reduce tax.
Glyndebourne Association America Inc is a US based 501(c)(3) charitable organisation which supports Glyndebourne and its productions in the UK. Contributions to Glyndebourne Association America Inc are tax deductible for US citizens and taxpayers to the extent permitted by US law.
Swiss taxpayers may support Glyndebourne tax efficiently by making their donations or memberships payable to the Association Genevoise pour la Promotion de L'Art Lyrique.
You can deduct the value of the donation from your taxable income, up to 20% of the latter. For example, if you have a taxable income of CHF 100,000 per year, the total deductible amount of donations is CHF 20,000.
If you are interested in making your funding membership or donation through AGPAL, please contact Richard Joyner, Development Coordinator at firstname.lastname@example.org or phone +44 (0) 1273 815 403.
All gifts and memberships have to be specifically designated to Glyndebourne in order for the transfer to be made to our accounts in the UK.
Association Genevoise pour la Promotion de l'Art Lyrique
23, rue de la Fontenette
CH - 1227 Carouge
Ref : Glyndebourne
UBS Geneva, Succursale Acacias
Account number: 240 - 452.076.01V