This section provides details of the treatment, for Guernsey income tax purposes, of payments made in favour of Guernsey registered charities with effect from 1 January 2010.
Exemption from income tax
- Charity income used for 'charitable purposes' only is exempt from paying Guernsey income tax. To apply for exemption the Charity must be a Guernsey registered charity (registered in accordance with the Charity Law, 2008), [or a charity not required to be registered in accordance with that Law].
Tax relief on donations
- Tax relief can't be claimed by the individual who makes a donation and is only available to the Charity where the following applies:
- For the calendar years 2021 and 2022, tax relief on charitable donations can be claimed by charities on donations of £500 - £7,500 per individual (£15,000 per married couple). The relevant amounts for earlier years (2010 - 2020) were £5,000 per individual and £10,000 per married couple. From 2023 onwards the relief is restricted to £7,500 for each individual. Donations will be treated as having been made to the Charity net of income tax. For example, a donation of £5,000 grossed up (£5,000 X 100/80 = £6,250) results in a repayment to the charity, by the Revenue Service, of £1,250, or 25% of the original donation.
- To enable the Charity to claim the tax relief, a donor declaration form ( CH1 - Charity payment certificate (for donations made up to and including 2020) [128kb] or CH1 - Charity Payment Certificate (for donations made during 2021 onwards) [183kb], as appropriate) needs to be completed by the donor, to certify that the donor has met certain conditions.
- A repayment claim form and a repayment summary, completed by the Charity, should be submitted to the Revenue Service after the relevant calendar year ends, along with the completed original certificated signed by the donor. The Charity should retain a copy of the certificate for their own records.