Gift giving and tax implications

**DaveB** · 21 March 2006, 16:16

Originally posted by Mailman

Since the IR website is a complete pile of sh1te and I cant find a damn thing on tax and giving of gifts I shall instead turn to my well informed "friends" here

The story is this, Im involved with a charity group and we sometimes give gifts of money (not large amounts, £50 would most likely be the highest we have ever given) for special events like deaths within the family, birth of babies, weddings etc.

Now, does anyone know what the implication is with these gifts and Gordo's greed for money?

If we give a gift does the person receiving have to pay tax on it or do we have to pay tax AND probably more importantly, is there a limit we can give before we are taxed to hell?

Any help here would be most appreciated.

Regards

Mailman

Well this seems to cover it all quite nicely.

As I understand it, if you give to a *registered* charity then you can declare the gift as a tax deduction. If the charity is not registered then you cannot declare it as a deduction. I'm not sure what happens when the charity pays it out.

If you give the gift directly to the person needing it then you pay tax on it as normal and they recieve it tax free as a gift.

I'm sure there are all sorts of limits on this in terms of amounts of money involved but for a £50 donation I think this pretty much covers it.

IANAA, talk to yours.

**Mailman** · 22 March 2006, 15:03

As I understand it, if you give to a *registered* charity then you can declare the gift as a tax deduction.

Dave its the other way around, the charity is giving money as a gift. There is no info on this on the tax scums website that I can see.

Thanks for your help though.

Regards

Mailman

**DaveB** · 22 March 2006, 15:35

Then it counts as a gift and is not taxable. The charity should be able to claim back the tax on the original donation as well.

**Mailman** · 22 March 2006, 22:24

So a charity can give a "gift" to an individual without there being any tax implications?

Regards

Mailman

**DaveB** · 23 March 2006, 08:44

As far as I am aware, yes this is the case. As long as it is a one off payment and not a regular income for the recipient.

As always, IANAA.

**ladymuck** · 23 March 2006, 08:50

Originally posted by DaveB

As always, IANAA.

OK, this is driving me nuts - what does IANAA mean please?

**DaveB** · 23 March 2006, 09:02

Originally posted by ladymuck

OK, this is driving me nuts - what does IANAA mean please?

I Am Not An Accountant.

**ladymuck** · 23 March 2006, 10:18

Ah, all is clear now, thank you!

**Mailman** · 23 March 2006, 10:23

hahahaha...and here I thought IANAA was some kind of professional body!

Mailman

Gift giving and tax implications