Ways of Giving
A Guide to Tax-efficient Giving
Charitable status allows gifts to Millfield or Millfield Foundation by both individuals and corporate supporters to be tax-efficient, either through a single donation or by spreading the donation over a number of years.
Gifts of Cash by Gift Aid
Making a gift of any size using the Gift Aid scheme enables Millfield to reclaim from the Government the basic rate of tax (20%) on the gift which will already have been paid by the donor. If you pay higher rate tax, you can claim the difference between the higher rate of tax (40 and/or 50 per cent) and the basic rate of tax (20 per cent) on the total 'gross' value of your donation.
| Your Contribution | You can claim higher tax rate relief (if applicable) | Your actual contribution |
Millfield can claim basic rate tax (currently 22%) |
Millfield recieves |
| £100 |
£37.50 |
£62.50 |
£25.00 |
£125.00 |
| £1,000 |
£375.00 |
£625.00 |
£250.00 |
£1,250.00 |
| £5,000 |
£1,875.00 | £3,125.00 |
£1,250.00 |
£6,250.00 |
| £50,000 |
£18,750.00 | £31,250.00 |
£12,500.00 |
£62,500.00 |
Donation form (pdf 94.2kb)
Gifts of land, buildings or shares by individuals
If you give land, property or qualifying shares to Millfield, or sell them to Millfield at less than their market value, you can claim Income Tax relief and lower your tax bill, as well as getting Capital Gains Tax relief.
Gifts of Appreciated Shares and Securities
Large tax savings are made by the donor by saving not only on capital gains tax but on income tax as well.
All donations of shares to Millfield receive income tax relief of 100% of their market value. This means if you give shares worth £100,000 to Millfield, you will receive income tax relief based on this in full, i.e. £40,000 at the higher rate of tax. This relief applies whether it is an individual or a company disposing of the shares.
Donors will claim the tax relief at their top rate of tax on their Self assessment or Corporation Tax return.
The only requirements to make such a saving are that donors must:
- Claim the tax relief themselves in their tax return
- Give the shares intact (i.e. not sell them first)
- Give listed shares or securities, units in authorised trusts, shares in open-ended investment companies, holdings in foreign collective investment schemes or unlisted shares or securities dealt on a recognised stock exchange
In addition to the income tax saving, donors making gifts of shares to Millfield will not attract any capital gains liability. If a tax payer makes a gift of shares to Millfield, with £100,000 worth of capital gains, there will be no capital gains tax on this gift; so a potential saving of £40,000.
While we endeavour to ensure all information is correct, we advise you to consult your tax adviser or accountant when considering changes to your financial affairs.
Leaving gifts to Millfield in your Will
If you leave a gift to Millfield in your Will, its value will be deducted from your estate (your money, possessions and property) before Inheritance Tax is worked out. Gifts made before your death may also qualify for exemption.
Ways you can leave gifts to Millfield in your Will
If your estate is liable to Inheritance Tax, you could reduce the amount due by choosing to give money to Millfield.
You can either leave a fixed sum (known as a 'Pecuniary Legacy'), or part or all of your estate once other gifts have been distributed (known as a 'Residuary Legacy'). You can do this through your Will, or by a declaration to the executors or personal representatives giving instructions as to how you would like your legacy to be distributed.
Gifts made to Millfield in the seven years before your death are exempt from Inheritance Tax.
Giving through your payslip or pension
If you pay tax through PAYE (Pay As You Earn), Payroll Giving offers a simple way to reduce the cost to you of making regular gifts to Millfield. If your employer or company/personal pension provider runs a Payroll Giving Scheme, you simply authorise them to make the donation from your wages or pension before deducting any tax.
For USA Residents
British Schools & Universities Foundation Inc. (BSUF)
Millfield is registered with the British Schools & Universities Foundation Inc (BSUF), an approved charitable organization under section 501(c)(3). Anyone making a donation to BSUF and specifying a preference for Millfield will be eligible for a charitable deduction for US Income Tax purposes. Grants are made by the board every three months. Cheques should be made payable to the BSUF and forwarded with a BSUF donation form (pdf 303kb) to:
British Schools & Universities Foundation Inc.
575 Madison Avenue, Suite 1006
New York, NY 10022-2511
A copy should also be sent to Millfield's US representative so the School can properly acknowledge your support:
Mr Behdad Alizadeh
Pardus Capital Management L.P.
590 Madison Avenue
Suite 25E
NEW YORK NY 10022
USA
Email: behdad.alizadeh@PardusCapital.com