Meet our Expert

Tony_AustinTony Austin – Chartered Accountant

Tony is an accountant who has been involved with the not-for-profit sector for over 15 years. He was previously National Charity Tax Partner with a major firm of accountants and now works as an independent tax consultant, advising charities and donors on tax issues. He also writes and lectures on direct tax issues for charities and is a member of the Charities Tax Group. 

 

“I gave tickets for charity concerts at The Albert Hall to The Teenage Cancer Trust who organised the concerts. The market value of the tickets was much higher than face value. Can I claim either value against income tax, if so which?”

 

The answer

There is only income tax relief for gifts of money, land and buildings, quoted securities and business assets and then only if all conditions are met. The purchase of the tickets was not a gift because you bought something and the tickets given to the trust were not any of the items that qualify, so there is no income tax relief.

If instead of buying the tickets, money had been donated with nothing in return, it could have qualified for Gift Aid, assuming a valid declaration was made. Alternatively, you could have sold the tickets for market value to an unconnected person and donated the proceeds under Gift Aid.