TQOTW: Carry Back of Charity Donations

My client’s 2017/18 net income is just over £100,000 and their personal allowance is being tapered. Is there anything that can be done now?

Your client can make a qualifying gift aid donation before their 2017/18 tax return is submitted and treat the gift aid donation as being made in the 2017/18 tax year.

Although your client will still technically be out of pocket after making the donation, their chosen charity will enjoy an additional 20% increase on the donation made by your client and your client will receive marginal tax relief of 60% (40% plus the 20% relief lost with the persona allowance tapering).

If your client would rather make a donation than pay a 60% marginal tax rate on some of their income guidance on making a qualifying donation can be found here: https://www.gov.uk/donating-to-charity/gift-aid.

The ‘carry-back’ of qualifying gift aid donations could also benefit your clients who have income which exceed the £50,000 threshold for the high-income child benefit charge and could make sufficient donations to bring their adjusted income below the threshold.


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If you have a tax query, why not contact the Tax Advice Line on 0844 892 2470 to discuss it. Our team of experts have a wealth of experience and can also provide a written consultancy service at competitive rates.

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Tax Advisor
0844 892 2470


Alexandra initially trained as an accountant, working in small general practice where she gained significant experience in corporate and personal tax compliance. After qualifying as a Chartered Accountant, Alexandra began to specialise in tax. She has worked in tax advisory and compliance roles in a large accountancy practice and a specialist tax consultancy practice, whilst developing her tax knowledge and gaining Chartered Tax Advisor qualification.

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