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LC 15: Amount of tax credit for independent earners for 31 July 2024 to 31 March 2025
or “Tax credit calculation for independent earners from 31 July 2024 to 31 March 2025”
You could also call this:

“Get money back for donations to charities or public benefit organisations”

If you make a charitable or other public benefit gift in a tax year, you can get a tax credit. To get this credit, you need to meet the requirements in section 41A of the Tax Administration Act 1994.

The amount of your tax credit is calculated using a formula. The formula is: total gifts × 33⅓%. ‘Total gifts’ means all the charitable or public benefit gifts you made in the tax year.

If a tax agent or representative applies for a refund on your behalf, they need to see the receipt for your gift. You need to keep this receipt for 4 tax years after the tax year you’re claiming for.

This tax credit is a refundable tax credit under section LA 7. It’s not affected by sections LA 2 to LA 6, which are about a person’s income tax liability.

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Next up: LD 2: Exclusions

or “Who can't claim tax credits for charitable donations”
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Part L Tax credits and other credits
Tax credits for gifts and donations

LD 1Tax credits for charitable or other public benefit gifts

  1. A person who makes a charitable or other public benefit gift in a tax year and who meets the requirements of section 41A of the Tax Administration Act 1994 has a tax credit for the tax year equal to the amount calculated using the formula in subsection (2).

  2. The formula referred to in subsection (1) is—

    total gifts × 33⅓%.

    Where:

    • In the formula, total gifts means the total amount of all charitable or other public benefit gifts made by the person in the tax year.

    • Despite subsection (1), the requirements of section 41A are modified if a tax agent or representative applies for a refund under that section on behalf of a person, and—

    • the tax agent or representative sees the receipt for the person’s charitable or other public benefit gift; and
      1. the person retains the receipt for 4 tax years after the tax year to which the claim relates.

        1. A credit under this section is a refundable tax credit under section LA 7 (Remaining refundable credits: tax credits for social policy and other initiatives) and is excluded from the application of sections LA 2 to LA 6 (which relate to a person’s income tax liability).

        Compare
        Notes
        • Section LD 1(1): substituted, on , by section 440(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section LD 1(2): amended, on , by section 440(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section LD 1(4): amended, on , by section 229(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
        • Section LD 1(4)(a): amended, on , by section 229(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
        • Section LD 1(5): amended (with effect on 1 April 2015), on , by section 200 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
        • Section LD 1(5): amended (with effect on 1 April 2008), on , by section 321 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section LD 1(5): amended, on , by section 440(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section LD 1 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
        • Section LD 1 list of defined terms representative: inserted, on , by section 229(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).