Tax Benefits of Giving to Holy Family Catholic Church and Setting Up Charitable Trusts

Ever wonder why some people say giving away money actually saves them cash? The short answer is the tax code. In the UK, charities like Holy Family Catholic Church can give you real tax relief when you donate. Below is a quick, no‑jargon guide to the biggest benefits and how to claim them.

Gift Aid – the simplest way to boost your donation

If you’re a UK taxpayer, every £1 you give can be worth £1.25 for the church. That extra 25p comes straight from the government via Gift Aid. All you need to do is fill out a short form once a year. The church then claims the extra money from HMRC, and you don’t pay any extra tax unless you’re a higher‑rate taxpayer.

Higher‑rate taxpayers can claim back the remaining 20% on their self‑assessment return. That means a £100 donation could cost you only £80 after tax relief. It’s a win‑win: the church gets more money, and you keep more of your earnings.

Charitable Trusts – bigger gifts, bigger tax breaks

When you have more than a few hundred pounds to give, a charitable trust might make sense. Two popular options are:

Charitable Trusts – you set up a trust, hand over assets, and the trust donates the income to the church. You get an immediate tax deduction for the value of the assets you contribute.
Charitable Remainder Trusts (CRTs) – you place property (like a house) into the trust, receive an income stream for life, and the remainder goes to the church after you pass away. The IRS‑style rules apply in the UK, giving you a capital‑gains tax break and income‑tax relief on the charitable portion.

Both structures let you keep control over how the money is used while still getting tax relief now. The main downside is set‑up cost and paperwork, so you’ll want a solicitor or accountant who knows charity law.

One real‑world example: a parishioner put a rental property into a CRT, kept a modest rent each month, and the church received the full market value when the trust ended. The donor saved on capital‑gains tax and got an income‑tax deduction, while the church gained a valuable asset.

When planning a trust, ask yourself three questions:

Do I have assets that will appreciate – like property or shares?
Do I want an income stream now, or am I comfortable waiting for the charity to receive the gift later?
Can I afford the legal fees for a trust set‑up?

If the answer is yes, talk to your tax adviser about setting up a charitable trust that benefits Holy Family Catholic Church.

Besides the money‑saving side, giving also builds community. When you reduce your tax bill, you’re effectively freeing up more cash for the church’s programs – youth groups, food banks, and outreach projects that help Patchway families.

So, whether you’re adding a line to your grocery list or transferring a house, there’s a tax benefit waiting for you. Fill out that Gift Aid form, explore trusts if you have bigger assets, and watch your contribution grow while your tax bill shrinks.

Got questions? The church’s finance officer can walk you through the paperwork, and a local accountant can show you the exact numbers on your tax return. Making the most of tax benefits is easier than you think – and it helps keep Holy Family Catholic Church thriving for years to come.

Gareth Sheffield

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