Gift Aid

How Gift Aid works

The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. Charities or CASCs take your donation - which is money you've already paid tax on - and reclaim the basic rate tax from HM Revenue & Customs (HMRC) on its 'gross' equivalent - the amount before basic rate tax was deducted.

Basic rate tax is 20 per cent, so this means that if you give £10 using Gift Aid, it's worth £12.50 to the charity.

There are some exceptions where Gift Aid can't be reclaimed:

If you're not a UK taxpayer

Charities can claim back the basic rate of tax on donations as a donor has already paid the tax on their earnings. So if you don't pay UK income or capital gains tax, then you cannot reclaim Gift Aid on your donation.


If you're donating someone else's money

Gift Aid cannot be reclaimed on donations from someone else - for example, if you've raised money through a raffle or you're making a donation on behalf of a company.


If you're sponsoring someone who has received a contribution towards their event costs

Gift Aid can't be reclaimed if you're sponsoring a relative who has received a contribution towards their event from their charity - for example travel costs. 

For more information on Gift Aid and how it works, please visit:

http://www.hmrc.gov.uk/charities/gift_aid/basics.htm