Gift Aid: how it works for donors and what the 25p top-up means
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
Gift Aid lets a charity claim an extra 25p from HMRC for every £1 you give, at no extra cost to you. This guide explains who it covers, what you sign, and how higher rate taxpayers can claim relief.
What Gift Aid is
Gift Aid is a scheme that lets charities and community amateur sports clubs (CASCs) reclaim tax on donations from individuals. As of 13 October 2026, GOV.UK says the charity can claim an extra 25p for every £1 you give, and that it will not cost the donor anything extra.
For example, a £100 donation can be worth £125 to the charity once Gift Aid is added. The extra money comes from HMRC, not from you.
Who it applies to
- Individuals who pay enough UK Income Tax or Capital Gains Tax in the tax year to cover the tax the charity reclaims.
- People who give to a registered charity or a CASC that has an HMRC charity reference number.
- Higher rate taxpayers, who can also claim extra relief for themselves.
It does not apply if you have not paid enough tax in the year. Donations from limited companies cannot be claimed under Gift Aid, and neither can gifts of shares, charity vouchers or Payroll Giving.
How the tax test works
The charity does not get the money automatically. GOV.UK explains that the tax you have paid in the tax year must be at least as much as the charity claims on your gifts. Your donations should also be no more than 4 times the tax you have paid in that year. The tax can be Income Tax or Capital Gains Tax.
If you stop paying enough tax, you need to tell the charities you give to. If a charity reclaims more tax than you have paid, HMRC may ask you to pay the difference. It can be worth checking that you pay enough tax before signing a declaration.
The Gift Aid declaration
Before a charity can claim, you usually sign a Gift Aid declaration. The charity provides the form. You need a separate declaration for each charity. One declaration can cover a single gift, current and future gifts, and gifts you made in the last 4 years.
Many charities offer this at the point of giving, for example by a tick box online or a form in a collection envelope. Keeping a record of what you signed and what you gave can make later checks simpler.
If you pay tax at a higher rate
The charity claims basic rate tax on the gift. GOV.UK says that higher rate taxpayers can reclaim the difference between the tax they paid and the tax the charity recovered. One way is through a Self Assessment tax return. Another is by asking HMRC to amend a tax code.
GOV.UK gives this example: a £100 donation becomes £125 with Gift Aid, and a 40% taxpayer can reclaim £25, which is 20% of £125. If you are in Scotland, your income tax bands and rates can differ from the rest of the UK, so it can be worth checking which rates apply to you on the official pages.
What cannot be claimed on
- Payments for goods or services, or purchases from a charity shop or similar.
- Donations where the donor receives a benefit over a set limit, known as the benefit rule.
- Donations from limited companies.
- Payroll Giving, because tax is taken off before you are paid, so you pay no Income Tax on the amount donated, although National Insurance still applies.
- Gifts of shares and charity cards or vouchers, such as CAF vouchers.
Some special cases can qualify, such as sponsored challenges, charity events and auctions, and some church collections. The rules for these are more detailed, and the charity decides whether it can claim.
Check before you act
Gift Aid rules, limits and rates can change. Please confirm the details on the official pages linked below before relying on this guide. If you are unsure how it applies to you, HMRC or Citizens Advice can explain it for free. This guide is general information, not personal advice.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
