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I'd like to know if it's possible for a UK taxpayer to deduct from tax donations that he did to a foreigner charitable organization (no profit) , for example from Italy. The organization is regularly registered.
If it's possible, which kind of document will this person need? Is a simple receipt enough?

Thanks for your help!!! :o)

2007-09-23 05:05:00 · 2 answers · asked by Tara 1 in Business & Finance Taxes United Kingdom

The 2 answer (of Steve B and Kan D) disagree.
I work for the foreigner charitable organization and I would like to know if our UK sponsors can have some tax deductions or not...

2007-09-23 22:35:02 · update #1

2 answers

If it's Registered in UK, then Yes, but only if you are paying 40% Tax.

What happens is, the Charity reclaims (& keeps) the 22% Tax .. if you are liable at 40% rate, you get to reclaim the difference (i.e. 18%) via your end of year Personal Assessment Tax Return.

You should keep the Reciept with the UK Registered Charity no. on it... you will only have to produce it if the Tax man questions your claim .. which is only likley to happen if you claim you donated thousands of pounds ...

2007-09-23 05:18:05 · answer #1 · answered by Steve B 7 · 1 1

The answer is easy enough, NO, you can't! You can only claim, against tax, any monetary donations that have been contributed to a charity that is both based in the UK and is registered with the Charities Commission. To claim, you need official receipts which include both the charity's Company Registration Number and the Charities Commission's Registration Number. It also has to have the charities Registered Address on the receipt. The maximum that can be claimed against tax is £5,000 in any one tax year. If you earn less than £40,000 per year and attempt to claim the full £5,000, you are highly likely to have all your finances investigated, including all your bank accounts etc. In addition to your claim, the Registered Charity can also claim any tax that would have been due on the donation thus increasing the value of the original donation. If you are trying to scam the tax system, don't bother as you will get caught. Even though you will not get any tax reduction for any donations that you claim to have made, the IR will contact Italy and have everything checked out. Regardless of the outcome, you won't pay less tax than what is due and you can end up in prison for "attempting to evade tax" which is a criminal offence and carries a custodial sentence.

2007-09-23 06:49:50 · answer #2 · answered by kendavi 5 · 0 0

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