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Effect of Gift Aid?
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Newly_retired
Posts: 3,184 Forumite


in Cutting tax
I have just completed my Tax return. It seems that savings interest has pushed me into the 40% tax bracket, but my pensions and interest have only been taxed at 20%. Would this be because of Gift Aid on charitable donations? It seems that I have been given a higher threshold at 20%. Is that likely to be correct?
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Newly_retired said:I have just completed my Tax return. It seems that savings interest has pushed me into the 40% tax bracket, but my pensions and interest have only been taxed at 20%. Would this be because of Gift Aid on charitable donations? It seems that I have been given a higher threshold at 20%. Is that likely to be correct?
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Thanks. I have looked at various tax guides and they only refer to Gift Aid being relevant once you are a 40% tax payer. Until I did my sums of interest payments I did not know I had reached the threshold.0
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I also note that I owe some tax on pension income which was underpaid last year through my tax code. Won't HMRC be collecting that through my tax code already this tax year?0
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Newly_retired said:I also note that I owe some tax on pension income which was underpaid last year through my tax code. Won't HMRC be collecting that through my tax code already this tax year?It is very unlikely that an underpayment for 2024/25 is being collected in this tax year unless identified as a potential underpayment during 2024/25.1
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Newly_retired said:Thanks. I have looked at various tax guides and they only refer to Gift Aid being relevant once you are a 40% tax payer. Until I did my sums of interest payments I did not know I had reached the threshold.
The LITRG guidance is usually quite good.
Paying tax above the basic rate is what matters really, not being a 40 tax payer.
Scottish intermediate rate taxpayers and those with dividends taxed at rates above the basic rate can all benefit, not just 40% payers.0
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