Answers · UK 2025/26
How much tax can I save by donating to charity in the UK?
Donating via Gift Aid means the charity gets 25% extra (basic-rate tax reclaimed). Higher-rate (40%) taxpayers claim a further 20% personally via Self Assessment; additional-rate (45%) taxpayers claim 25%. £80 donation costs £60 net for a higher-rate donor.
Full answer
UK Gift Aid lets charities claim 25p for every £1 you donate, provided you're a UK taxpayer who has paid enough Income Tax / CGT to cover the claim. Higher rate (40%) and additional rate (45%) donors can also claim the difference back through Self Assessment or by writing to HMRC: 20% extra for higher rate, 25% extra for additional rate. Worked example: £100 donation via Gift Aid. Charity receives £125 (£25 from HMRC). Higher-rate taxpayer claims back: 20% × £125 = £25, so net cost £75. Additional-rate: 25% × £125 = £31.25, net cost £68.75. Carry-back: you can elect to treat donations made before 31 January as in the previous tax year — useful if you crossed a tax band. Charity Sale of Goods: separate volunteer rules. Payroll Giving — donations from gross pay save Income Tax automatically (no Gift Aid needed). Donations of qualifying shares/property to charity also get full Income Tax relief, plus CGT exemption — generous for higher-rate taxpayers with appreciated assets.
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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.