PT8 Gifts to Charity & P10 Scottish taxpayers

Question 1

If a charitable donation under the Gift Aid Scheme is made, how is that relieved?

Answer 1

the taxpayer’s basic rate and higher rate bands are extended by the donation grossed up by 100/80.

Question 2

A donation does not qualify for Gift Aid relief if ….

Answer 2

value of any benefit received in relation to the gift exceeds certain prescribed limits.

Question 3

Gift Aid donations can be …..

Answer 3

carried back and treated as having been made in the previous
tax year.

Question 4

If carrying back gift aid…

Answer 4

Both the donation and the election to carry back must be made by 31 January in the tax year.

Question 5

When calculating a personal allowance….

Answer 5

the grossed-up donation is deducted from net income prior to calculating any restriction required.

Question 6

If a gift of quoted shares or land is made to charity…

Answer 6

the relevant value of those shares or the land is deductible from income.

Question 7

Define a Scottish taxpayer

Answer 7

A UK resident individual will be a Scottish taxpayer for a tax year if:
* they have a ‘close connection’ to Scotland; or
* where they have no close connection to Scotland, they spend more days in Scotland than elsewhere in the UK.

Question 8

A ‘close connection’ (to Scotland) exists if:

Answer 8

• the individual has only a single place of residence which is in Scotland; or
• where the individual has more than one place of residence in the UK, their main place of residence is in Scotland for at least as much of the tax year as it is in any other part of the UK