Answers · UK 2025/26
What is Gift Aid and how does it work?
Gift Aid lets UK charities reclaim 25% on top of your donation (the basic-rate tax HMRC assumes you already paid). Higher-rate (40%) and additional-rate (45%) donors can also claim back the extra 20%/25% via Self Assessment.
Full answer
UK Gift Aid mechanism 2025/26. You donate £100 to a UK charity, sign their Gift Aid declaration. Charity reclaims £25 from HMRC (the basic-rate 20% tax assumed paid on your gross donation). Charity receives £125 total. Eligibility: you must have paid (or will pay) at least as much Income Tax and/or CGT during the tax year as the charity is reclaiming. Otherwise HMRC asks you to pay the difference. Most basic UK taxpayers easily cover this. Higher-rate / additional-rate donors: the charity gets the basic-rate top-up; you can claim back the remaining 20% (higher-rate) or 25% (additional-rate) via Self Assessment or your tax code. Example: £100 donation, charity gets £125. Higher-rate donor claims 20% × £125 = £25 personal tax saving. Net cost £75. Additional-rate: 25% × £125 = £31.25 saving. Net cost £68.75. How to claim: write donation on SA101/SA100 Self Assessment, OR write to HMRC asking for tax code adjustment. Gift Aid carry-back: elect to treat donations made before 31 January as in the previous tax year (useful for income bracketing). Payroll Giving — separate scheme: donations from gross pay, automatic Income Tax relief (no Gift Aid declaration needed). Gift Aid Small Donations Scheme: charity can claim 25% top-up on cash/contactless donations up to £8,000/year without individual declarations.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.