1. Gift Aid
Donating to St Catharine’s through the Gift Aid scheme means that the College can claim an additional 25% on top of your donation, at no extra cost to you. Higher and additional rate taxpayers also can benefit from income tax relief when donating through Gift Aid.
For St Catharine’s to claim Gift Aid on your gift(s) you:
- Must pay the same amount or more in UK income/capital gains tax in the year in which you make your gift(s); and
- Make a Gift Aid declaration that gives the College permission to claim it
Your donations will qualify for Gift Aid as long as they do not exceed four times what you pay in income and/or capital gains tax in that tax year.
Higher or additional rate taxpayers can claim the difference between the rate they pay and the basic rate on their donations, either through their self-assessment tax return or by asking HM Revenue and Customs to amend their tax code. For example:
- You donate £1,000 to St Catharine’s. The College claims Gift Aid of £250 and you, as a higher rate taxpayer, can claim back £250 (20% of the gross value of your gift, £1,250).
With Gift Aid
Net Cost to You (40% taxpayer)
Net Cost to You (45% taxpayer)
For more on the Gift Aid scheme, please visit www.gov.uk/donating-to-charity/gift-aid or speak to your financial advisor.
2. A Gift of Shares
As a registered charity, gifts of shares to St Catharine’s can attract relief on both income tax and capital gains tax. Costs incidental to the giving of shares, such as broker fees, can also attract relief.
Capital gains tax relief: No tax is payable on gifts of shares to St Catharine’s.
Income tax relief: Deduct the value of the shares – as determined by their market value on the date of transfer – and incidental costs from taxable income for the tax year in which the gift is made.
Income Tax Relief
Cost to You
|Basic rate taxpayer (20%)||£10,000||£2,000||£8,000|
|Higher rate tax payer (40%)||£10,000||£4,000||£6,000|
|Additional rate taxpayer (45%)||£10,000||£4,500||£5,500|
Tax relief is available to all UK taxpayers donating shares and securities listed on recognised UK and overseas stock exchanges. It is also available for units in UK open-ended investment companies (OEICs) and some similar foreign investments.
For further information on the tax benefits of donating shares, please see www.gov.uk/donating-to-charity. To discuss a gift to St Catharine’s, please contact the Alumni and Development Office. You should seek professional advice before proceeding with a gift of shares.
3. Legacy Gifts
The College’s academic and extra-curricular life has always benefited profoundly from the generosity of Members and friends through legacy giving, and this will continue to be so in years to come. As a registered charity, a gift in your will to St Catharine’s can also attract favourable tax treatment.
Types of Legacy Gift
A share of your estate (a “residuary gift”): After providing for family and friends, you can leave a share of the remainder of your estate to St Catharine’s.
A cash (“pecuniary”) gift: You can choose to leave an exact sum of money to the College.
A specific gift: The College can also accept gifts of specific items, such as property and shares.
Tax Treatment of Legacy Gifts
Generally, inheritance tax is liable on estates valued at and above £325,000, at a rate of 40%. Legacy gifts are deducted from the value of an estate before inheritance tax is calculated. The rate of inheritance tax applied to an estate is reduced to 36% if 10% or more of the estate is left to charity. For more information, please speak to your financial advisor or visit www.gov.uk/inhertiance-tax.
Capital gains tax is not liable on gifts to charity, nor on legacy gifts of assets generally.
Please note: We recommend seeking professional advice before making or amending your will.
“I give to the Master and Fellows of St Catharine’s College, Cambridge CB2 1RL (charity number 1137463) the residue / a proportion of the residue of my estate / the sum of £[amount] free of tax for the general purposes of the College and I declare that the receipt of the Bursar or other authorised officer of the time being of the College shall be a good and sufficient discharge to my Executors.”
The Woodlark Society
The Woodlark Society recognises, in their lifetime, those who have made a legacy gift in favour of the College. We recognise that your will is a personal matter and that you may wish your support to remain private. If, however, you choose to inform the College of your support then we are able to thank you through membership of the Society. Members are invited to a special luncheon in College in December, as well as to the College garden party in June.
“It was very easy for me to decide to leave a legacy to Catz when drawing up a will, for three reasons: to enable St Catharine’s to continue to provide the great educational and community experience that I enjoyed; to follow the example of my late father, Ansel, who also left a legacy to Catz; and because as a charity trustee I am well aware of the value of legacies as a vital source of funding.”
Katerina Gould (1983, Law)