Gift Aid ItHow does Gift Aid work? If an individual pays income tax on their earnings, any donation they make to charity is Gift Aid eligible. This means that the charity can reclaim that tax from HMRC. So, if we receive a donation of £100 from a tax paying individual, we can then reclaim another £25* back.
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Notes
1. Gift Aid is tax relief on money donated to UK charities.
2. Donations are treated as if the donor had already deducted basic rate tax from them. The charity can then reclaim this tax to increase the value of a donation.
3. You must pay an amount of income tax and/or capital gains tax at least equal to the tax that the charity reclaims on your donations in the tax year (approximately 25p for every £1)*.
4. If in the future your circumstances change and you no longer pay tax, on your income and capital gain, equal to the tax that the charity reclaims, you should cancel your declaration. You can do this at any time by notifying the charity.
5. If you pay tax at a higher rate, you can claim further tax relief in your Self Assessment tax return.
6. If you are unsure if your donations qualifies for Gift Aid tax relief, ask the charity. Alternatively, you can ask your local tax office for leaflet IR113 Gift Aid.
7. You must notify the charity if you change your name or address.
8. This document may be submitted to the Inland Revenue upon request.
9. A declaration can be made to cover individual donations or a series of donations. It can cover donations made during a specified period or to cover all future donations. They can also be backdated for up to 6 years prior to the date of the declaration providing the donation was made since 6 April 2000.
* Does not include additional Transitional Relief at approximately 3%
1. Gift Aid is tax relief on money donated to UK charities.
2. Donations are treated as if the donor had already deducted basic rate tax from them. The charity can then reclaim this tax to increase the value of a donation.
3. You must pay an amount of income tax and/or capital gains tax at least equal to the tax that the charity reclaims on your donations in the tax year (approximately 25p for every £1)*.
4. If in the future your circumstances change and you no longer pay tax, on your income and capital gain, equal to the tax that the charity reclaims, you should cancel your declaration. You can do this at any time by notifying the charity.
5. If you pay tax at a higher rate, you can claim further tax relief in your Self Assessment tax return.
6. If you are unsure if your donations qualifies for Gift Aid tax relief, ask the charity. Alternatively, you can ask your local tax office for leaflet IR113 Gift Aid.
7. You must notify the charity if you change your name or address.
8. This document may be submitted to the Inland Revenue upon request.
9. A declaration can be made to cover individual donations or a series of donations. It can cover donations made during a specified period or to cover all future donations. They can also be backdated for up to 6 years prior to the date of the declaration providing the donation was made since 6 April 2000.
* Does not include additional Transitional Relief at approximately 3%
