Gift Aid

Gift Aid is the most valuable everyday tax relief for UK charities: it turns a £100 donation into £125 at no cost to the donor. It works by letting the charity reclaim the basic-rate tax the donor already paid on the money they gave.

A charity or CASC can claim an extra 25p for every £1 donated under Gift Aid, based on the 20% basic rate of Income Tax. (Source: GOV.UK, Tax relief when you donate to a charity: Gift Aid, accessed 9 July 2026.) The donor must be a UK taxpayer who has paid enough Income or Capital Gains Tax that year and has given a valid Gift Aid declaration.

Claim through HMRC’s Charities Online service, keep your declarations and records, and consider the Small Donations Scheme for bucket collections. Work out what you are owed with the Gift Aid calculator, and see the full rules in the Gift Aid Handbook.