Tax Effective Donations

article by: MBH 


As the GWRT is a registered charity, UK taxpayers can make their donations tax-efficient.  Spreading your gift over a number of years can make a donation more manageable.


Benefits for tax payers

Because the GWRT is a charity the gross value of gifts made by UK taxpayers to the Railway - individual or corporate - can be considerably more than the final cost to the donor. The table below illustrates the amounts paid by the tax payer and the final amount received by the Railway, if the amount that you wish to gift is not illustrated please ask we will be happy to supply the details.


gift aid

GWRT can claim Gift Aid on payments by members of their own membership subscriptions, associated donations and also 'one-off' donations. This is an important source of income to GWRT at no extra cost to the member; to date, over 70% of our membership income has been eligible for Gift Aid.


Giving by pledge under the Gift Aid scheme is usually the most effective way of contributing, since it spreads the contribution over a number of years, which helps to make a larger gift affordable. Although there is no minimum period we hope that people will consider a five-year pledge since it enables a significant sum to be given by relatively modest monthly, quarterly or annual payments. The gross value of a pledge can serve as collateral for financing capital projects


Lump sum gifts

Those who are not in a position to make a pledge can achieve the same tax benefits by making a lump-sum gift or a series of lump-sum gift, under the Gift Aid scheme. There is no limit to the number of lump-sum donations a donor may make.  Printable form for donation by cheque  Printable form for Monthly Giving by Bankers Order .  We do not take direct donations by Credit/Debit card because of the high fees charged by the banks; these detract from the donations. However, you can donate by Credit/Debit card via PayPal – go to our “New Donations” page, where all the methods of payment are shown.


Higher rate taxpayers

A higher rate taxpayer can claim tax relief at the difference between basic rate and higher rate income tax (currently 20% - the difference between 40% and 20%; or 25% - for those paying tax at the 45% rate) on the total value of a donation. This applies to both pledged and lump sum donations and substantially reduces the ultimate net cost.


Tax benefits on gifts of shares, land and buildings

Donations of shares, land and buildings, whether by an individual or a company, are not only exempt from capital gains tax, but also allow the donor to claim income tax or corporate tax relief on the current market value of the gift.


Inheritance tax relief

In broad terms where a person leaves 10% or more of their estate to charity the inheritance tax rate on the rest of the estate not passing to charity is reduced from 40% to 36%.


Payroll Giving

If your employer offers Payroll Giving scheme, you can use it to get tax relief automatically - at your highest tax rate on any donation you make to charity direct from you wages or pension pay packet.


Every gift to the campaign is much needed and will be greatly valued.




donation illustration



Note: Tax recovery has been calculated at the basic rate of 20% and higher rate at 40%. Figures have been rounded.  Pledge forms enable payments to be made monthly, quarterly or annually. An additional 5% relief will apply to those subject to the Additional Tax rate of 45% for tax payers earning over £150,000 in a tax year from April 2