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Donation to Ukranian colleague
Ltd148
Posts: 3 Newbie
in Cutting tax
We have a Ukrainian colleague, currently living in Warsaw, Poland who is helping to host a number of friends and family members fleeing from the war in Ukraine. Another colleague, based in the UK, would like to donate some money to him to assist with the expense of what he is undertaking. Is there a way of avoiding tax on such a payment to make it as effective as possible?
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Comments
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Is this a personal donation or from a business?0
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To be clear, this would be a personal donation0
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Tax on what? No tax is deducted when you make a donation in the UK. Whether there is tax deducted on donations/gifts of money received in Poland or the Ukraine would be up to those countries' governments. Obviously in the UK there is gift aid where the registered charity gets extra to compensate for the tax you paid when you earned the money.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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There is no gift tax in the U.K. on the recipient.Ltd148 said:To be clear, this would be a personal donationIf the donor dies within seven years of making such a gift it may affect the amount of inheritance tax by the estate which, even then, would need to be in excess of £325000, double if married and even more if a homeowner.0 -
The donation would be coming out of taxed income (PAYE). We were hoping there might be some mechanism to recover the income tax element and 'gross-up' the donation0
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Most personal donations come out of taxed income. Certain UK charities have "gift aid" schemes but I am pretty certain these have to be arranged between the charity and HMRC.Ltd148 said:The donation would be coming out of taxed income (PAYE). We were hoping there might be some mechanism to recover the income tax element and 'gross-up' the donationIf you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0 -
Gift Aid only applies to organisations that register with HMRC for the purpose, such as charities and community amateur sports clubs.0
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