Charity tax deductions – and shopping at Ikea.

In the UK (and other EU countries), a charity donation can be tax deductible, which means you can make a smaller donation and the charity can top-up with the tax you originally paid when collecting your salary.

The EU has now ruled that governments cannot limit tax deductions to donations made to charities within the same country as the resident.

http://europa.eu/rapid/pressReleasesAction.do?reference=CJE/09/5&format=HTML&aged=0&language=EN&guiLanguage=en

It’s all a bit arcane – and probably wont affect that many people.

However, as the infamous furniture retailer, Ikea is actually a Dutch charity (albeit for reasons of tax evasion than doing good deeds), could I here in the UK make a “donation” to Ikea in the Netherlands and get a gift back of, say a new sofa – and use the tax deduction to lower the amount of my upfront donation?

I’d love to see a tax lawyer exploit that one ;)

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1 Comment

  1. D.A

    I’m in two minds about Ikea’s 70p charge if paying by credit card.

    On one hand I don’t like the fact most other shops have a 2.5% Card Processing (VAT fiddle) Charge built into the total cost, and if I pay in cash recon I should pay 2.5% less. On the other hand I get annoyed that having bought £200+ worth of stuff from Ikea they have the cheek to ask for another 70p. I feel like I’m being conned either way.

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