Gift Aid

What is Gift Aid?

Gift Aid is a tax relief scheme allowing UK charities to reclaim an extra 25% in tax on every eligible donation made by a UK taxpayer, at no extra cost to you.

For Example:

If you donate £100, the government will contribute 25% of your donation as Gift Aid (£25 in this case), the total donation will be £125. (£100 + 25% Gift Aid = £125 total donation)

When you donate, you’ll be asked to confirm whether or not you are a UK taxpayer. Please note that Gift Aid can only be reclaimed on donations made by individuals who pay UK income or capital gains tax at a rate at least equal to the amount reclaimed on their donations in the current tax year.

The process is simple – all you have to do is make a Gift Aid declaration. 

Under UK law, certain donations are not eligible for Gift Aid. If your donation falls into any of the following categories, Gift Aid shouldn’t be claimed:

  • Donations made by anyone who is not a UK taxpayer.*
  • Donations made on behalf of someone else or a group of people – For example, you collect money from your friends and family and then made a bulk donation. Even if they are UK taxpayers, the donation is not eligible. HMRC needs a Gift Aid declaration from each of the donors contributing to the collection.
  • Donations made in return for something. For example, you are making a donation in return for a ticket to attend an event, most purchases of goods at an auction, a cake sale donation, or buying a raffle ticket.
  • Donations made on behalf of a company (however, the company can claim tax relief on the donation when donating directly to the charity).
  • Benefits to higher-rate taxpayers: If you pay tax at the higher rate, you can reclaim tax relief on your gross donation at 20% (i.e. the difference between the higher rate of tax at 40% and the basic rate at 20%).

What if I am not a UK taxpayer? – The Gift Aid scheme is unique to the UK, your donation will not be eligible for Gift Aid.