Joan makes a donation of €1,000 to an approved body in 2016. The approved body can claim a refund of the tax Joan has paid.
The tax rate is 31%, so this means that the donation of €1,000 is 69% of the total donation.
To calculate the relief, the total donation is grossed up as follows: (€1000/69)*100 = €1449.27.
The refund amount that can be claimed by the approved body is €449.27.
Once Joan has completed either the Enduring Certificate or Annual Certificate, the approved body can claim the refund.
The amount of the refund cannot be more than the amount of tax paid by the donor for the same year. So, in example 1, if Joan only paid tax of €350 in 2016, then the maximum refund the approved body can claim is €350.