There is a relief for the donation of a heritage item. This is a cultural item, including an archaeological item, archive, a state record, manuscript, collection, or cultural items. It must be determined that the item concerned is an outstanding example of the type involved, preeminent in its class and suitable for acquisition by an approved body such that its export outside the State would diminish the cultural heritage of the state.
The value of the item must be these €150,000 or where it is part of a collection at least €50,000. It must be specifically assessed by a committee as suitable for acquisition by one of a number of approved bodies
An approved body refers to one of the major national cultural institutions, such as the National Museum, National Gallery, National Library National Archives and other approved state bodies.
There is a tax credit for 80% of the market value of the item donated. The relief granted can be offset against most tax liability including income taxes, capital gains tax, CAT and corporation tax, but not USC
There is relief for a gift of money to the State for use for purposes for which public monies are provided. It must be accepted by the Minister. The donor must not dictate how funds are to be used.
There is a relief for the donation of heritage property to Irish property to the Irish Heritage Trusts for the OPW. there is a payment on account of tax equal to 50% of the market value of the property donated which can be credited against the donor’s tax liability. It may be put against almost any taxation head. The maximum donation in the year is €6 million.
The heritage property must be a building or garden approved by the Minister for the Environment as being a preeminent, an outstanding example of its type, of significant, scientific, national, architectural or aesthetic and suitable for acquisition by the Irish Heritage Trust.
FA 2013 reduces the rate of relief in respect of donations of heritage property to 50 percent of the market value from 80 percent. Building and gardens are to include land necessary for the provision of access on the part of the facility for visitors. The OPW or Irish Heritage Trust may deem land owned by third parties to be necessary for the provision of access to the property. Such land is also deemed heritage property for this purpose.
Donations to Charity
Donations to eligible charities and approved bodies attract tax relief. Certain conditions apply. The charity, in effect, receives the donation net of income tax, so that it receives an additional 31% of the donation from the Revenue Commissioners.
Donors must certify that they meet certain conditions including in particular they have and will pay tax of at least 31% on the grossed up (refund inclusive amount paid to the charity)
There are limits on the amount of donations. There is a limit of €1 million per annum in donations by a donor.. A cap of 10 percent of total income applies, where the individual is associated with a body. This includes where he is an employee of the body or otherwise connected
Approved bodies may be eligible charities or be certain institutions including
- Specified Higher level educational institutions and bodies
- Institutions providing primary and secondary education based on Department of education approved curricula/programs
An eligible charity must be approved by the Revenue Commissioners and have exemption for tax for at least two years. Its income must be applied for charitable purposes. It must comply with prescribed conditions.it must furnish information and cooperate with revenue Commissioners.. It must furnish information in relation to its income and expenditure to Revenue.
The minimum donation is €250. It must be in the form of money and must not be repayable. It must not confer benefits on the donor. It must not be conditional on any the acquisition of any property or asset by the charity.
FA 2013 provides that approved charities may reclaim part of donations made by both employed and self-employed persons. Formerly self-employed persons obtained a deduction. The minimum qualifying donation is €250, both for employed and self-employed persons. The specified rate is 31 percent rather than the standard rate.
The maximum donations by one individual donor in a year cannot exceed €1 million. There is a cap of 10 percent in respect of bodies with which the donor is associated. Donors certify that they meet the conditions and pay income tax at least 31 percent. The donor need only pay income tax equal to at least 31 percent of the amount of the donation grossed up. Accordingly a standard rate donor may make a donation on which tax at 31 percent may be reclaimed.
Approved Sports Bodies
Tax relief is allowed in respect of donations to approved sports body to fund capital projects. The project must be approved by the Minister and have an aggregate cost of not more than €40 million.
The body must be tax exempt because of its being established for the promoting of athletic or amateur games of sports. It income must be applied for such purpose only.