Gift Aid is a brilliant scheme that allows charities to claim an extra 25p for every £1 you donate, at no extra cost to you. If you're a higher rate taxpayer, you can also get personal tax relief.

When you donate to a charity and make a Gift Aid declaration, the charity can claim back the basic rate tax you've already paid on that money.

Extra Relief for Higher Rate Taxpayers

If you pay tax at 40% or 45%, you can claim back the difference between your tax rate and the basic rate (20%) on your gross donation. You do this on your Self Assessment tax return.

Example:
You donate £100 to charity. The charity claims Gift Aid to make your donation worth £125. If you're a 40% taxpayer, you can claim back £25 (20% of the £125 gross donation) on your tax return.

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