Guernsey Charities Benefit from Increased Tax Relief on Donations
Guernsey residents are being encouraged to take advantage of a tax relief system that allows their charitable donations to be 'grossed up' for tax purposes. This system enables charities to claim back the tax paid on donations of £500 or more, effectively increasing the donation amount without additional cost to the donor. For instance, a £500 donation can be increased to £625, providing an extra £125 to the charity. The Association of Guernsey Charities (AGC) has noted a decline in the amount of tax relief claimed by charities, dropping from £427,144 in 2019 to £290,578 in 2023. To counter this, the maximum qualifying donation will rise from £7,500 to £10,000 per person per year starting January, allowing a £10,000 gift to be treated as £12,500. This change aims to encourage more donations and maximize funding for charities. 
