John makes a donation of €600 to an approved sports body in 2017. The approved sports body can claim a refund of the tax John has paid.
In 2017 John paid tax at the higher rate of 40%, this means that the donation of €600 is 60% of the total donation.
To calculate the relief, the total donation is grossed up as follows: (€600/60)x100 = €1000.
The refund amount that can be claimed by the approved body is (€1000-€600) €400.
Once John has completed the appropriate certificate, the approved sports body can claim the refund.
If John only paid tax of €350 in 2017, then the maximum refund the approved sports body can claim is €350.