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.
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.
Gift Aid Should Not Be Claimed When:
- Making a donation in return for tickets (raffles, events and auctions) or goods and services (including ‘experience’ days). This is because they are not ‘freewill’ gifts – you are getting something in return for your donation.
- Making a donation on behalf of someone else or a group of people. For example, if a friend gives you £10 which you donate to your Fundraising Page using your own card and details. Even if your friend is a UK taxpayer, the donation is not eligible because HMRC needs to know the details of the person actually contributing the funds.
- Making a donation on behalf of a company. You can only make Gift Aid declarations on your own taxpayer status when spending your own money. However, a company can claim tax relief on the donation when donating directly to the charity.
- Making a donation to a family member who’s taking part in an event and their charity is contributing to the cost. For example, if you’re donating to a close family member who is doing an overseas trek and the charity is paying for the cost of their trip.
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. If you are not a UK taxpayer, you can still make a donation but your donation will not be eligible for Gift Aid.
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.
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