Neil I believe that’s true for the UK. For two reasons
No such thing as a standard deduction
Donations up to the higher tax threshold are not ‘deductible’ but the 20% tax paid on these pounds goes to the charity as an extra donation.
It’s only above the 20% tax rate (higher tax bracket) that you get a refund (if you pay the 40% rate you get 20% back and 20% goes to the charity as above).
So this approach would be counter productive if you earn moderately above the higher tax threshold. The exception would be if you earn so far above the higher tax bracket that donating 50% every 5 years would leave you above the higher tax bracket threshold that year. (However in that case you should probably be donating more than 10% pa ;) )
Neil I believe that’s true for the UK. For two reasons
No such thing as a standard deduction
Donations up to the higher tax threshold are not ‘deductible’ but the 20% tax paid on these pounds goes to the charity as an extra donation.
It’s only above the 20% tax rate (higher tax bracket) that you get a refund (if you pay the 40% rate you get 20% back and 20% goes to the charity as above).
So this approach would be counter productive if you earn moderately above the higher tax threshold. The exception would be if you earn so far above the higher tax bracket that donating 50% every 5 years would leave you above the higher tax bracket threshold that year. (However in that case you should probably be donating more than 10% pa ;) )