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Making your gift go further - tax effective giving

Your gift to ACT can be made in a few ways that can suit your requirements and tax status.

We welcome every gift to Addenbrooke’s Charitable Trust (ACT) no matter how much it is. However, we also realise that some donors may wish to make significantly large gifts or take advantage of tax relief to allow that gift to make even more of a difference.

You may wish, for example, to make a single gift or structure your support through agreed instalments. Whichever option you choose, 100% of your gift will go to ACT, which then makes sure that the donation is spent on the vital projects that you wish to fund at Addenbrooke’s and the Rosie hospitals.

Charitable status and tax-efficient giving
Addenbrooke’s Charitable Trust (ACT) is an ‘exempt charity’ under Schedule 3 of the Charities Act 2011, which means your gift could be enhanced through tax-efficient giving. ACT is a registered charity with the Charities Commission and our charity number is 1170103.

Gift Aid
UK taxpayers can make their gifts go further with Gift Aid, which enables us to claim tax relief on donations from UK taxpayers. For every £1 donated, 25p in reclaimed tax is added. This means that an £8,000 gift with Gift Aid is worth £10,000 to ACT. 

Your donations to charities will qualify for gift aid as long as they do not total more than four times what you paid in tax for the tax year (6 April to 5 April) in which the donation is made. The tax could have been paid on income or capital gains. You must tell the charities you support if you stop paying enough tax.

Higher Rate Taxpayers
Higher rate (40%) and Additional Rate (45%) taxpayers can also reclaim the difference between the basic rate and their top rate of tax on the value of their gift.

For example, the Cambridge Clinical Research Fellowships scheme provides an entry point into a career in clinical academia and intensive research training in an exceptional environment for outstanding doctors, nurses, midwives and allied health professionals, often leading to the completion of ground-breaking research. It provides salary support and a consumable allowance for up to one year, during which time it is anticipated that successful candidates will apply for nationally competitive fellowships, with a view to completing a PhD.

  • Example 1– A donor paying UK tax at 40% could make a gift of £8,000 that grows to £10,000 when Gift Aid is added at the basic rate of tax. The donor can also claim higher rate relief of £2,000 which is the difference between basic rate and higher rate tax. Once this relief is deducted from the original gift the net cost to the donor is reduced to £6,000.
  • To support a £70,000 Cambridge Clinical Research fellowship via ACT would mean a net cost of £42,000 once gift aid and tax relief is taken into account: The fellowship could be funded outright with a one-off gift of £56,000 and the donor can claim tax relief of £14,000.
  • Example 2 – A donor paying UK tax at 45% could gift £10,000 at a net cost of £5,500. A gift of £8,000 grows to £10,000 when Gift Aid is added at the basic rate of tax. The donor can claim additional rate relief of £2,500 which is the difference between basic rate and additional rate tax. Once this relief is deducted from the original gift the net cost to the donor is reduced to £5,500.
    Supporting a £70,000 Cambridge Clinical Research Fellowship through ACT would mean a net cost of £38,500 once gift aid and tax relief is taken into account: The fellowship could be funded outright with a gift of £56,000 and the donor can claim tax relief of £17,500.

Giving stocks and shares
Share giving provides donors with tax relief on both income and capital gains tax. Share gifts qualify for tax relief equal to the market value of the shares on the day the gift is made, including associated costs such as broker fees.

  • Illustration – How a share gift can offer tax relief: An individual who pays tax at the higher rate of 45% and who makes a gift of shares valued at £10,000, would reduce their taxable income by this amount and their income tax by up to £4,500 for the year. Additionally, the donor would not have to pay Capital Gains Tax (CGT) on any increase in the value of the shares since they were bought.

Corporate Giving
We offer a range of opportunities for companies of all sizes to philanthropically support the hospitals. Such support can be part of broader partnership activities between a company and ACT, positioned to develop mutual benefit around developing talent and research priorities as well as supporting projects such as new staffing posts, ward refurbishments and patient care initiatives.

We would be happy to talk to you more about how your company might benefit from working with ACT. Email Emma Bray or call 01223 217757.

Legacy Gifts
Have you considered supporting us through your estate? A gift in your will would make a big difference to the future of Addenbrooke’s Hospital. Our team would be delighted to tell you more about remembering Addenbrooke’s in your will. Email hello@act4addenbrookes.org.uk or call on 01223 217757.

Outside the UK
To talk about making a gift, please contact the team on 01223 217757 or email.

To support Addenbrooke’s and the Rosie hospitals please donate here.

Notes
Further information on UK tax law in relation to charitable donations is available from the Government website while further information on tax relief is available here.

Your donations to charities will qualify for gift aid as long as they do not total more than four times what you paid in tax for the tax year (6 April to 5 April) in which the donation is made. The tax could have been paid on income or capital gains. You must tell the charities you support if you stop paying enough tax.

Further information is available from HM Revenue and Customs here.

If you think tax relief is something you could take advantage of, you are advised to seek advice from the financial services sector on your particular circumstances.
If you are a UK donor and do not have a direct contact in the financial services sector (an accountant for example) 
HM Revenue and Customs can also provide guidance as can Citizens Advice.

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