Running 26.2 Miles for a Great Cause (and a Good Tax Break)
The Tax Benefits of Charitable Giving
I’m thrilled (and a little nervous!) to share that I’ll be running the London Marathon this April in support of Sue Ryder, our official charity partner at Blincoe Financial Planning.
If you’d like to support the cause, I’ve set up a fundraising page here:
JustGiving/GeorgeTaylor.
No pressure at all of course, but any donation, large or small, would be hugely appreciated. Thanks in advance for your support, and I’ll be sure to keep you posted on the training and the day itself.
Why Sue Ryder?
Sue Ryder is our chosen charity partner. They provide expert, compassionate care to people facing terminal illness or bereavement. Whether in hospices or in people’s homes, they help individuals and their families through the most difficult times of their lives.
Their work goes far beyond medical care, offering emotional and practical support when it's needed most. As a charity, Sue Ryder depends heavily on voluntary donations and fundraising to continue their vital services across the UK.
The Tax-Efficient Side of Charitable Giving
No Blincoe Blog would be complete without a planning angle, so here’s a quick overview of the tax benefits that come with charitable giving.
Income Tax Relief
Much like personal pension contributions, charitable donations qualify for income tax relief at your marginal rate.
So, the real cost of a £100 donation breaks down as follows:
Basic rate taxpayer (20%) – You pay £80
Higher rate taxpayer (40%) – You pay £60
Additional rate taxpayer (45%) – You pay just £55
How does this work in practice?
In this example, you would make a donation of £80, and the charity would then ‘gross’ this up to £100 by reclaiming basic rate tax through Gift Aid.
If you're a higher or additional rate taxpayer, you can later claim back the extra 20% or 25% (i.e. £20 or £25) as a tax rebate via your self-assessment tax return.
It’s therefore important to keep a record of your donations throughout the tax year to ensure these can be properly declared and the extra relief claimed.
Inheritance Tax Benefits
Charitable donations are also highly efficient from an inheritance tax (IHT) perspective.
Unlike other lifetime gifts, they are immediately exempt from IHT - there’s no seven-year rule - meaning they fall outside your estate straight away.
If your estate exceeds the available nil-rate bands, this offers a potential 40% tax saving, making charitable giving a powerful tool for reducing your future IHT liability.
Summary
Thanks to the generous tax reliefs available, any charitable donation is likely to go further than you’d expect, benefiting both the charity and your own tax position.
Think of it as a tax-efficient investment in watching me suffer through 26.2 miles - all for a great cause.
Thank you in advance for your support and Happy Thursday!
Kind regards,
George
George Taylor, CFA
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This blog is for general information only and is intended for retail clients. It does not constitute financial or tax advice, nor is it an offer to buy or sell any specific investment. Since I don’t know your personal financial situation, you should not rely on this content as tailored advice. While we aim to provide accurate and up-to-date information, we cannot guarantee that all details remain correct over time. We are not responsible for any losses resulting from actions taken based on this blog’s content.
