Tax Efficient Giving
There are many ways to make a gift to Benenden that allow you to make the most of your donations.*
Gift Aid
If you are a UK taxpayer and make a charitable donation using Gift Aid, for every £1 you donate, Benenden can claim an extra 25p of tax from the government.
Higher rate taxpayers can also reclaim the difference between basic and higher rate tax via their tax return (either for themselves or the School). For those paying tax at 45% this could mean that every £1 received by the charity, it only costs you 55 pence.
Here are three examples of what donations might equate to in ‘real terms’ after Gift Aid has been claimed:
| Donor Contribution | £3,000 | £10,000 | £30,000 | £50,000 |
|---|---|---|---|---|
| Total donation with Gift Aid | £3,750 | £12,500 | £37500 | £62,500 |
| Top rate taxpayer reclaim | £938 | £3,125 | £9,375 | £15,625 |
| Net cost to top rate taxpayer | £2,062 | £6,875 | £20,635 | £34,375 |
Donating from Overseas
In many countries it is possible to take advantage of local tax incentives for charitable giving when making a donation to a charity in the UK.
Donors from the United States…
can make tax efficient donations to Benenden School (Kent) Ltd via the British Schools and Universities Foundation (BSUF). All donations are fully tax deductible.
Donors from Hong Kong…
can make donations through the Benenden School Hong Kong Trust which can offer certain tax benefits to Hong Kong residents (under section 88 of the Inland Revenue Ordinance).
Legacy Giving
In the UK gifts to charity are exempt from Inheritance Tax (IHT). Estates that are liable to pay IHT can reduce their tax bill by leaving 10 per cent or more of their net estate to charity. The HMRC website provides detailed information for calculating your potential tax liability and solicitors can offer further advice regarding IHT.
Reducing Inheritance Tax by a Deed of Variation as a Legatee
If you have recently received a legacy, it may be possible to vary the Will by Deed of Variation to redirect all or part of your gift to Benenden. If the Deed of Variation results in at least 10 per cent of the net estate passing to charity, the rest of the estate could benefit from a reduced rate of IHT, or you may be able to bring the taxable part of the estate down in value to within the IHT threshold (nil rate band) so that the estate pays no IHT at all.
For this to be effective Executors need to show HMRC that the recipient charity or charities have been notified of the existence of the Deed which, as of May 2026, needs to be made in writing within two years of the deceased’s death. The HMRC website provides detailed information for calculating your potential tax liability, while solicitors or tax advisors should be consulted for advice and to determine whether you and your circumstances are eligible.
Payroll Giving
UK donors paid through PAYE (Pay as You Earn) can give to charity tax free via their pay. Gifts are taken directly from gross pay before tax is applied giving immediate tax relief at the highest rate of tax for which you qualify. For further information click here.
* Benenden School does not provide tax, legal or accounting advice. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before making a donation.
