- This topic has 3 replies, 2 voices, and was last updated 12 months ago by
.
- Posts
Hello, I come up with a question in ACCA study hub
Which TWO of the following items of expenditure are deductible in the calculation of an individual’s taxable income?
a A contribution into a personal pension scheme
b A charitable gift aid donation
c A contribution into an employer’s occupational pension scheme
d A charitable donation made under the payroll deduction scheme
The correct answer is c&d. However I am wondering what is a charitable gift aid donation? I kind of feel it’s another way of saying donations under the gift aid scheme?
Thank you very much.you make a charitable gift aid donation out of the money that has already been taxed. It does not appear in the IT computation but extends the BR and HR bands to give relief at the higher rates. Tax relief is given at source.
- You must be logged in to reply to this topic.