What is Gift Aid?

A woman in a thrift store looking at clothing

Gift Aid is UK tax relief on cash donations to charities or Community Amateur Sports Clubs (CASCs). The way that Gift Aid works is that for donations from individuals, the ‘basic rate’ tax relief goes to the charity, and the higher or additional rate relief goes to the donor. This means that a charity can claim 25% extra in Gift Aid on ‘qualifying donations’.

In order to claim Gift Aid, the donor must make a declaration to certify that they:

are making a Gift of their own funds
are a UK taxpayer
have paid enough tax (income tax or capital gains) to cover the amount of Gift Aid

Where companies or trusts make a donation to charities, the company or trust takes all the tax relief.

The benefits returned to the donor must fall below the donor benefits limits. Where the donor benefits exceed the limits, then the donation will not qualify for Gift Aid. See Donor Benefits.

CTG does not provide tax advice and so the information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.