IEP Financial Limited 119 Church Road, Hove East Sussex BN3 2AF t: 01273 208813 f: 01273 325319 w: www.iepfinancial.co.uk Advisers Ian Poysden Patrick Spencer Graham King Stefan Olingschlaeger Sarah Crowley Steve Murphy Trevor Schooley Martin Evans Ben Gibson IEP Financial Limited are authorised and regulated by the Financial Conduct Authority. @iepfinancial iepfinancial Support Team David Williamson Lynette Palto Fiona Smith Greg Bonner William Lewry Joe Gillam Christopher Lampkowski Caroline Piggott Toby Virgo Andrew Spencer Faye Miller Sue Kinsella Alison Howell James Collins Danielle Johnston Alexander Kirkby Joe Gillam Kelly Palermo Benjamin Butler Natasha Stork Katie Grey Emma Dunn GIFT AID Charities can claim back basic rate tax on donations, meaning for every £1 you give the charity gets £1.25. You need to be a UK taxpayer to use this scheme. Higher rate and additional rate payers can also reclaim the tax paid on donations through self-assessment. This can effectively lower the net income at which their tax is calculated, which can be beneficial for those earning just over £50,000 who pay the High Income Child Benefit Tax Charge. It isn’t just big national charities like DEC, Cancer Research or Trussell Trust that use gift aid. If you make a voluntary donation (of at least 10%) on top of the standard ticket price to many museums and art galleries, then the total value of your purchase can benefit from gift aid. You can also use gift aid when buying an annual membership to these organisations. GIVE AS YOU EARN Some companies allow employees to make regular charity donations direct from their gross salary, exempting these donations from tax, although they are subject to National Insurance contributions. CHARITABLE LEGACIES If you leave a charitable donation or legacy in your will, it won’t be included within your estate when calculating inheritance tax. What’s more, if you bequeath at least 10% of your net estate to charity, any IHT due is charged at 36% rather than 40%. SHARE GIFTING Shares donated to charity are not subject to capital gains tax (CGT). The value will also be deducted from your taxable income, potentially reducing income tax. If a charity can’t accept shares directly you can sell them on their behalf, again avoiding CGT, although you will need an instruction from the charity. B The Financial Conduct Authority does not regulate tax, Wills or estate planning advice. Tax treatment varies according to individual circumstances and is subject to change. 8 CHARITY Charitable giving – doing it right The war in Ukraine and cost of living crisis have prompted many people to donate to charities helping those affected. Various schemes are available to boost the value of your charitable donations. 8 Managing energy price rises Ofgem, the utility regulator, is consulting on a proposal to adjust the energy price cap every quarter after forecasting a jump from £1,971 to about £2,800 in October. That figure is likely to drop to around £2,400 for many households following the Chancellor’s end of May measures including a £400 per household rebate. But a mid-winter bill amendment is still coming at the start of 2023. No-fault divorce In England and Wales, divorce has become much simpler and potentially quicker with the introduction of no-fault divorces since 6 April 2022. However, the reform has done nothing to simplify all the related financial issues, so professional advice will still be necessary. No-fault evictions In the Queen’s Speech the government announced that it would be introducing a Renter’s Reform Bill. Among its measures the Bill would remove the option of no-fault evictions which English landlords currently have (often called section 21 evictions). National insurance cut comes through If you are an employee, in July you should see the benefit of the change to national insurance contribution (NIC) thresholds announced in the Spring Statement. At best your NIC saving will be worth about £28 a month. NEWS ROUND UP Credit: Ink Drop/Shutterstock.com Credit: SewCream/Shutterstock.com
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