The Tax Rates tab stores all tax rate information. When your organisation claims taxes back from the Inland Revenue, the tax rate, the transitional relief rate if applicable, and the effective date are used to determine claim totals.
You can use the tax rate percentage and transitional relief rate to forecast incoming tax benefits from HM Revenue & Customs and show the potential Gift Aid that can be added to a donation. Tax rates and transitional relief also appear on payment records.
According to HM Revenue & Customs, no transitional tax relief is used in calculations for R68 Gift Aid claims or Gift Aid reports. Only the tax rate percentage is used. For gifts dated between 6 April 2008 and 5 April 2011, the current tax rate is 20%.