Tax Effective Giving

If you make a donation to the London Philharmonic Orchestra and you are a UK tax payer, then you can Gift Aid your donation.

Using Gift Aid means that for every pound you give, the Orchestra receives an extra 25 pence from the Inland Revenue, helping you donation go further. Gift Aid allows us to reclaim the basic rate of income tax you’ve paid on the donation. If you are a tax payer, this means that £100 can be turned into £125 just so long as donations are made through Gift Aid. Each tax year (6 April to 5 April) you must pay an amount of UK Income Tax or Capital Gains Tax at least equal to the amount of tax that all the charities or Community Amateur Sports Clubs (CASCs) will reclaim on your gifts for that tax year. Other taxes such as VAT and Council Tax do not qualify.

On top of that, if you’re a higher rate tax payer, you can claim further tax relief on the donation in your annual tax return. The amount you can claim back is the difference between the higher rate of tax at 40% or 50% and the basic rate of tax at 20% on the total value of the donation – a total of 20% and/or 30%. For example, if you give the Orchestra a donation of £1,000 and are liable at the 40% tax rate, you could claim £250 back (20% of £1,250).

Gifts of Quoted Shares and Securities

The rules on donating shares to charities offer donors to the Orchestra a significant means by which to reduce taxes while maximising their donations.

For example: As a higher rate (40%) tax payer, if you donate quoted shares worth £10,000 (on which you have a taxable gain of £5,000) you can reclaim full income tax relief on the gift and save 28% Capital Gains Tax on the £5,000. This means your £10,000 donation to the Orchestra would only cost you £4,600.

To claim Income Tax Relief donors may donate the following:

1. Shares or securities listed on any recognised Stock Exchange such as the London Stock Exchange (and including major overseas Stock Exchanges)
2. Shares or Securities dealt in on AIM and the PLUS-quoted market
3. Units in an Authorised Unit Trust
4. Shares in a UK Open-Ended Investment Company (OEIC)
5. Holdings in certain foreign Collective Investment Schemes

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