What is Gift Aid?
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 at no extra cost to you. For Example:
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)
What do I have to do?
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.
How can I change my Gift Aid status?
To make things easier in future, your Gift Aid status will be saved for the next time you donate. You can review this status each time you donate at the ‘Review and donate’ stage of the donation process.
Gift Aid should not be claimed when:
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.
What if I am a pensioner?
You may still be paying tax on a private pension plan or a savings account, or capital gains tax if you sell either some property or shares. You are still eligible if you have paid enough tax during the year to cover the amount we are reclaiming on your donations.
What if I don’t live in the UK?
A person living overseas can still claim Gift Aid provided that they are a UK taxpayer and can satisfy the Gift Aid declaration in the donation process.
What if my donation isn't eligible for Gift Aid?
If your donation isn't eligible for Gift Aid we will still send it to your chosen cause.