What is Gift Aid?
Gift Aid is a simple way to increase the value of a donation to charity. If you are a UK taxpayer, the charity could claim 25p on every £1 donated from the Government at no extra cost to you.
How does Gift Aid work?
As a UK taxpayer, you will pay tax on your earnings, pensions or savings, at either a basic rate of 20% or a higher rate of 40%. As you have paid tax on your income that you are then donating to charity, the Government allows the charity to reclaim this tax back.
Do I qualify for Gift Aid?
You can complete a Gift Aid declaration for charities if the amount of UK income tax or capital gains tax you’ve paid in any tax year (from 6th April on year to 5 April the next) covers the amount of tax charities will reclaim on your donations.
For advice on how to check if you’ve paid enough tax to use Gift Aid, please visit the HMRC website.
Which donations qualify for Gift Aid?
Gift Aid can only be claimed on personal donations.
Gift Aid cannot be claimed on:
- Donations on behalf of a group of people;
- Raffles and Auctions