What is the carry back of Gift Aid relief about?
If you make a gift to charity using Gift Aid at any time before you send your Tax Return to the Inland Revenue, you can elect to have all or any part of that gift treated as if it were paid by you in the previous tax year.
So you could give a gift to the dove trust right up to 31 January 2006 and get tax relief in 2004-5!
This is very useful, especially to higher rate tax payers, because any higher rate tax relief due can be carried back to the previous year of assessment, and reduces your tax bill for that year.
This can be advantageous in planning your tax, and worth discussing with us, or your tax adviser.
The tax refund is paid to you, and does not affect the position of the charity in any way.
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