Gift Aid
UK tax glossary · Last reviewed: April 2026
When you make a Gift Aid donation, the charity claims an extra 25p for every £1 you give — the basic-rate tax you paid on that pound of income. Higher-rate and additional-rate taxpayers can claim further relief through Self Assessment or their tax code.
A higher-rate taxpayer who donates £800 under Gift Aid: the charity receives £1,000 (£800 + £200 from HMRC). The donor can then claim £200 more through Self Assessment — making the effective cost £600 for a £1,000 donation.
Gift Aid donations also reduce your Adjusted Net Income, which can restore your Personal Allowance if you earn between £100,000 and £125,140, remove the High Income Child Benefit Charge, or extend your basic-rate band, reducing tax on savings or dividends.
Worked example
Higher-rate taxpayer donates £1,600 (cash). Gift Aid grossed: £2,000. Charity receives £2,000. Donor claims higher-rate relief: £2,000 × 20% = £400 via Self Assessment. Net cost of donation: £1,200.
Common questions
Can I Gift Aid donations if I am not a UK taxpayer?
No. Gift Aid only works if you have paid at least as much UK Income Tax or CGT as the charity claims back. Non-taxpayers must not tick the Gift Aid box.
Can I carry back a Gift Aid donation to the previous tax year?
Yes. If you make a donation between 6 April and 31 January (the SA filing deadline), you can elect to treat it as paid in the prior tax year — useful if your income was higher then.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.