Charitable gifts and section 24Make Text Bigger
If you are a higher rate taxpayer, then you get money back. E.g. if you give £100, then the charity can claim gift aid of £25 (which assumes you are a 20% tax payer) and if you pay 40% tax, you get another £25 back (see https://www.gov.uk/donating-to-charity/gift-aid )
On my tax returns charitable gifts increase my basic rate, e.g. on my last tax calculation it said:
Your basic rate limit has been increased by £ XX to £31,785 + XX for Gift Aid payments
So if my charitable giving XX was £10,000, I get £2500 back.
In 2017/2018 will I also get to use this new basic rate for my section 24 calculation on interest?
Depending a bit on my income, this could be quite a valuable additional incentive.
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