- How Gift Aid works, in numbers
- The rule that decides whether you qualify
- Making a Gift Aid declaration
- What charities can't claim Gift Aid on
- Payroll Giving: the other route
- Claiming tax relief sooner
- Giving land, shares or a gift in your will
- For charities: getting paid
- The verdict
- Frequently asked questions
Gift Aid lets a UK charity or community amateur sports club claim an extra 25p from HMRC for every £1 you donate, at no extra cost to you, as of October 2026. You sign a Gift Aid declaration, and you must have paid at least as much Income Tax or Capital Gains Tax in that tax year as the charity claims back. Higher rate taxpayers can then claim the difference for themselves.
The 25p comes from the basic rate tax you've already paid on what you gave. That's why the whole scheme depends on you having paid enough tax, and why HMRC can ask you to make up the difference if you didn't. Everything below comes from GOV.UK's guides for donors and for charities.
How Gift Aid works, in numbers
| You give | The charity claims | The charity receives |
|---|---|---|
| £1 | 25p | £1.25 |
| £100 | £25 | £125 |
That £100 example is GOV.UK's own. If you pay 40% tax, you can personally claim back £25.00 of it (£125 x 20%) through your Self Assessment tax return or by asking HMRC to change your tax code. The same applies if you live in Scotland.
The rule that decides whether you qualify
Your donations qualify as long as they're not more than 4 times what you've paid in tax in that tax year (6 April to 5 April). The tax can be on income or capital gains. If you stop paying enough tax, you must tell the charities you give to. Retirees and people with irregular income are the ones this catches most, because a declaration signed in a good year keeps applying in a lean one.
Making a Gift Aid declaration
- Ask the charity or CASC for its Gift Aid declaration form. It must have an HMRC charity reference number.
- Fill in your full name and home address, including your postcode. Donors who don't live in the UK are marked as a 'non-UK donor'.
- Choose what it covers: you can include current and future donations, plus all donations made in the last 4 years.
- Make a separate declaration for each charity you give to.
- Tell the charity about any tax years when you didn't pay enough tax.
Charities must keep a record of declarations for 6 years after the most recent donation they claimed Gift Aid on.
What charities can't claim Gift Aid on
- Donations from limited companies (they have different tax rules).
- Donations made through Payroll Giving.
- Payments for goods or services.
- Donations where the donor gets a 'benefit' over a certain limit.
- Gifts of shares.
- Charity cards or vouchers, for example Charities Aid Foundation vouchers.
- Membership fees to community amateur sports clubs.
- Donations received before the organisation was recognised as a charity or CASC.
There are special rules for fundraising challenges such as overseas treks or marathons, charity membership fees, church collections, charity shop sales of donated goods, events and auctions. Small cash and contactless donations of £30 or less can sometimes be claimed without a declaration under the Gift Aid small donations scheme, at 25%, if the charity also makes ordinary Gift Aid claims.
Payroll Giving: the other route
If your employer or pension provider runs a Payroll Giving scheme, your donation comes out before Income Tax, so the relief is built in rather than claimed by the charity. You still pay National Insurance on it. GOV.UK's figures for the cost of a £1 donation:
| Taxpayer | England, Wales, Northern Ireland | Scotland |
|---|---|---|
| Starter rate | Not applicable | 81p |
| Basic rate | 80p | 80p |
| Intermediate rate | Not applicable | 79p |
| Higher rate | 60p | 58p |
| Additional or top rate | 55p | 52p |
You can't give to a community amateur sports club through Payroll Giving, and charities can't add Gift Aid on top of a Payroll Giving donation.
Claiming tax relief sooner
Normally a Self Assessment return covers the previous tax year. For Gift Aid, you can also claim relief on donations in the current tax year up to the date you send the return, which helps if you won't be a higher rate taxpayer this year but were last year. You can't do it if you miss the deadline (31 January online, 31 October on paper) or if the two years' donations together are more than 4 times the tax you paid in the previous year.
Not filing a return? Contact HMRC: £5,000 or less can be claimed by phone, more than £5,000 in writing, and for £10,000 or more you'll also need the date and the charity. If you're a Self Assessment filer, keep the date, amount and charity for every donation.
Giving land, shares or a gift in your will
Gift Aid is for cash gifts, but GOV.UK lists other tax-free ways to give. Land, property or shares given to charity, or sold to it for less than market value, get relief from both Income Tax and Capital Gains Tax: you deduct the value from your total taxable income for that tax year, in the 'Charitable giving' section of your return. If you sell for more than they cost you but less than market value, you may still owe Capital Gains Tax, worked out on what the charity paid you.
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Gifts in a will are taken off the value of the estate before Inheritance Tax is calculated, and if 10% or more of the estate goes to charity, the Inheritance Tax rate may be reduced. For land, buildings and shares, keep the legal transfer documents, and keep donation records for at least 22 months from the end of the tax year they're for.
For charities: getting paid
A recognised charity or CASC can claim Gift Aid online, and GOV.UK says the payment should arrive within 5 weeks. Sole traders and partnerships donate as individuals, but limited companies follow separate rules, covered alongside Corporation Tax.
The verdict
Tick the Gift Aid box whenever you pay enough tax, because it costs you nothing and the charity gets a quarter more. If you're a higher rate taxpayer, claim your share back too. And if your income drops, tell the charities, because the 4 times rule is the one that can land you with a bill.
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Frequently asked questions
How much does Gift Aid add to a donation?
25p for every £1 you give, as of October 2026, so a £100 donation becomes £125 for the charity.
Who can use Gift Aid?
UK taxpayers whose donations aren't more than 4 times the Income Tax or Capital Gains Tax they've paid in that tax year.
Can higher rate taxpayers claim back Gift Aid?
Yes. You can claim the difference between your rate and the basic rate through Self Assessment or a tax code change.
Can a company donate with Gift Aid?
No. Charities can't claim Gift Aid on donations from limited companies, which have different tax rules.
