Answers · UK 2025/26

How does a higher-rate taxpayer claim back extra tax on Gift Aid donations?

A higher-rate taxpayer can reclaim the 20% difference between their 40% marginal rate and the basic 20% rate already claimed by the charity. On a £100 donation, the charity reclaims £25 and the taxpayer reclaims a further £25 via Self Assessment -- halving the net cost to £75.

Last updated: 27 June 2026Last reviewed: 27 June 2026How we verify

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When a UK taxpayer makes a Gift Aid donation, the charity reclaims basic-rate tax (20%) from HMRC. But if the donor pays income tax at 40% or 45%, they can reclaim the additional percentage themselves -- reducing their personal tax bill. **How the reclaim works** The gross donation for Gift Aid purposes is calculated as: > Gross donation = Net donation x 100/80 = Net donation x 1.25 The higher-rate taxpayer can reclaim 20% of the gross donation (the gap between 40% and 20%): > Personal reclaim = Gross donation x 20% **Worked Example -- £800 donation** 1. Gross donation: £800 x 1.25 = £1,000 2. Charity reclaims from HMRC: £1,000 x 20% = £200 3. Higher-rate taxpayer reclaims: £1,000 x 20% = **£200** 4. Net cost to donor: £800 - £200 = **£600** **Additional-rate taxpayers (45%)** The gap between 45% and 20% is 25%, so the reclaim is: > Reclaim = Gross donation x 25% On the same £800 donation: Gross = £1,000; personal reclaim = £250; net cost = £550. **How to claim** Higher and additional-rate taxpayers claim through: 1. **Self Assessment tax return** -- include the total Gift Aid donations in Box 1 on the charitable giving section. HMRC automatically calculates and reduces your tax bill. 2. **Writing to HMRC** -- if you do not file Self Assessment, you can contact HMRC directly. 3. **Adjusting your tax code** -- HMRC can alter your PAYE code to give the relief in real time. **Important limits** - You can carry back Gift Aid donations to the previous tax year (useful if you pay higher rates one year but not another). - The gift must be made from your own taxed income. Donations made on behalf of others do not qualify. - Keep records of all Gift Aid declarations in case HMRC requests them. **Practical tip** If you donate £1,000 to charity under Gift Aid and are a higher-rate taxpayer, the combined benefit is £250 to you personally plus £250 to the charity -- £500 total tax relief for a £1,000 donation.