Cash in your clutter

Declutterers who give their unwanted goods to certain charity shops can boost the value of these donations, at no cost to themselves, with Gift Aid tax relief
Declutterers who give their unwanted goods to certain charity shops can boost the value of these donations, at no cost to themselves, with Gift Aid tax relief.

These tax-efficient schemes for making non-cash donations – including Oxfam’s “Tag Your Bag” and a similar Gift Aid facility at British Heart Foundation shops — also allow higher-rate taxpayers to cut their own tax bills.

The tax benefit works like this: when donated goods are sold the charity claims an extra 28p from the taxman for each £1 an item was priced at, while donors who are in the 40 per cent tax band can reclaim a further 25p for each £1 of sale value.

To register, donors need to fill in a Gift Aid form that the shop provides. Sales of items — including clothes, books and CDs— are then tracked with special stickers. The individual relief is claimable via tax returns.

For details ask in charity shops or see www.oxfam.org.uk/tagyourbag or www.bhf.org.uk.

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