Gift Aid is a tax relief allowing UK charities to reclaim an extra 25% in tax on every eligible donation made by a UK taxpayer.
The Gift Aid scheme is unique to the UK. If you are not a UK taxpayer, you can still make a donation, but your donation will not be eligible for Gift Aid.
Donating through Gift Aid means charities can claim an extra 25p for every £1 you give. It will not cost you any extra.
You need to make a Gift Aid declaration for the charity to claim. You must give a declaration to each charity you want to donate to through Gift Aid.
You can include all donations from the last 4 years. Tell the charity about any tax years where you did not pay enough tax.
Your donations will qualify for Gift Aid as long as they’re not more than 4 times what you have paid in tax in that tax year (6 April to 5 April).
The tax could have been paid on your income or capital gains.
If you have claimed more tax relief than you are entitled to, you will need to notify the charity and pay back any excess tax relief to HMRC.
You must tell the charities you support if you stop paying enough tax.
Higher rate and additional rate taxpayers are eligible to claim tax relief on the difference between the basic rate and their highest rate of tax. This can be actioned through their Self-Assessment tax return or by asking HMRC to amend their tax code.
If a taxpayer donates £500 to charity, the total value of the donation to the charity is £625. The taxpayer can claim additional tax back of:
