Gift Aid is a UK tax relief scheme that allows registered charities and community amateur sports clubs (CASCs) to claim an extra 25p for every £1 you donate — at no additional cost to you. It works by the charity reclaiming the basic rate of income tax (20%) you've already paid on the money. You must be a UK taxpayer who has paid at least as much income tax or capital gains tax as the charity will reclaim.

Who can use Gift Aid?

You can use Gift Aid if you're a UK taxpayer (including income tax, capital gains tax, or both), and you've paid at least as much tax in that tax year as the charity will reclaim on your donations. Basic-rate taxpayers get no additional personal benefit — the charity receives the uplift. Higher- and additional-rate taxpayers can claim back the difference between their rate and the basic rate through Self Assessment.

How much extra can higher-rate taxpayers claim?

If you're a higher-rate taxpayer (40% tax band), you can claim back 20p for every £1 donated through Self Assessment or by writing to HMRC. On a £100 donation, the charity receives £125 gross, and you can personally reclaim £25. Additional-rate taxpayers (45%) can reclaim 25p per £1 donated. The donation is also treated as if made net of tax, so it extends your basic-rate band.

How long do I have to claim Gift Aid tax relief?

Higher-rate taxpayers can claim Gift Aid relief going back up to four tax years. So in April 2026 you can claim as far back as 2022/23. You claim through your Self Assessment tax return or by writing to HMRC if you don't file a return. Keep Gift Aid receipts and declarations as evidence.

What happens if I tick Gift Aid but am not a taxpayer?

If you tick the Gift Aid box but haven't paid enough tax to cover what the charity reclaims, you're legally responsible for the shortfall. For example, if you donate £100 and haven't paid at least £25 in income tax that year, HMRC can recover the difference from you. Check your tax position before ticking Gift Aid — it's a legal declaration.

Gift Aid Explained — How to Claim Tax Relief on Charitable Donations | PocketWise

Gift Aid is one of the UK’s most valuable tax reliefs for charitable giving — yet many donors don’t realise they can claim anything, and many simply forget to include it on their tax return. This guide explains how Gift Aid works, who benefits, and how to make sure you’re not missing out.

How Gift Aid Works

When you make a donation and sign a Gift Aid declaration, the charity can claim an additional 25% from HMRC on top of your donation — at no cost to you.

This works because Gift Aid treats your donation as having been made after basic rate income tax (20%) was deducted. The charity claims that tax back from HMRC.

Your donation	Charity receives	You pay
£10	£12.50	£10
£50	£62.50	£50
£100	£125.00	£100
£500	£625.00	£500

The uplift is 25p per £1 — this comes from HMRC, not you.

Who Can Make a Gift Aid Declaration?

You can use Gift Aid if all of the following apply:

You’re a UK taxpayer (income tax, capital gains tax, or both)
You’ve paid at least as much tax as the charity will reclaim on your total donations across all charities in that tax year
You’re donating your own money (not money raised for you, or a business donation)

You cannot use Gift Aid if you’re donating on behalf of someone else, or if you’ve earned below the personal allowance and paid no tax that year.

What Higher-Rate Taxpayers Can Claim Back

Gift Aid particularly benefits 40% and 45% taxpayers, who can personally reclaim the difference between their tax rate and the 20% basic rate.

40% (Higher Rate) Taxpayer

Donation	Charity receives	You can reclaim	Your net cost
£100	£125	£25	£75
£500	£625	£125	£375
£1,000	£1,250	£250	£750

45% (Additional Rate) Taxpayer

Donation	Charity receives	You can reclaim	Your net cost
£100	£125	£31.25	£68.75
£500	£625	£156.25	£343.75
£1,000	£1,250	£312.50	£687.50

You claim this through your Self Assessment tax return each year.

How to Make a Gift Aid Declaration

Most charities ask you to sign a Gift Aid declaration when donating. You can provide this:

Online — tick the Gift Aid box when donating on a charity’s website
By post — return a signed Gift Aid form included with appeal letters
In person — sign a form at a charity shop, event, or collection
Retrospectively — many charities accept backdated declarations

A single declaration can cover past and future donations to the same charity — you don’t need to sign a new one every time.

Backdating Gift Aid — The Four-Year Rule

Higher-rate taxpayers who have forgotten to claim can backdate Gift Aid relief for up to four previous tax years.

Tax year	Backdating deadline
2022/23	5 April 2027
2023/24	5 April 2028
2024/25	5 April 2029
2025/26	5 April 2030

To claim, either:

Include donations on your Self Assessment tax return
Write to HMRC with details of each charity and amount donated

Claiming Gift Aid Through Self Assessment

On your Self Assessment return, enter total Gift Aid payments in the Charitable Giving section. HMRC will:

Extend your basic-rate tax band by the grossed-up donation (reducing the amount taxed at 40%)
Refund any higher-rate tax you’ve overpaid as a result

Example: You’re a 40% taxpayer and donated £1,000 to charity with Gift Aid. The grossed-up donation is £1,250. Your basic-rate band expands by £1,250, meaning £1,250 less income is taxed at 40% — saving you £250.

Gift Aid and Self Assessment: What Records to Keep

You don’t send receipts to HMRC, but keep records in case of enquiry:

Charity name and charity registration number
Date of donation
Amount donated
Copy of Gift Aid declaration

Records should be kept for at least six years (the standard HMRC enquiry window).

Gift Aid on Charity Shop Donations

You can Gift Aid goods you donate to charity shops under the retail Gift Aid scheme. The charity sells the items and treats the proceeds as a Gift Aid donation from you.

To participate:

The charity shop registers you as an agent
They send you periodic statements of goods sold on your behalf
You confirm you’re a taxpayer and want to Gift Aid the proceeds
The charity claims the 25% uplift from HMRC

Higher-rate taxpayers can also claim back the additional tax on these proceeds through Self Assessment.

Gift Aid and Payroll Giving

Payroll Giving (also called Give As You Earn) is different from Gift Aid. With Payroll Giving:

Donations come out of your pay before income tax is deducted
You receive tax relief at your highest marginal rate automatically — no Self Assessment needed
There’s no need to be a UK taxpayer separately — the relief is built in

Method	Relief rate	Requires Self Assessment
Gift Aid	20% to charity + claim back higher-rate difference	Only for 40/45% payers
Payroll Giving	Full marginal rate (20%, 40%, or 45%) built in	No

Situations When You Can’t Use Gift Aid

Situation	Why Gift Aid doesn’t apply
You’ve paid no tax that year	Charity would have to repay HMRC
Donation benefits you (e.g. raffle ticket)	Must be a pure donation
Donating business money	Must be personal funds
Donating on someone else’s behalf	Must be your own money
Buying items from a charity shop	No Gift Aid at point of purchase (retail Gift Aid is separate)

Gift Aid on Crowdfunding and JustGiving

Online platforms like JustGiving, GoFundMe, and Enthuse can collect Gift Aid declarations when you donate digitally. The platform passes the declaration to the charity, who then claims from HMRC.

Always tick the Gift Aid box when donating online to a registered UK charity — it costs you nothing.