Civil Partnership Giving

Learn About Gift Aid

Any UK tax payer wishing to make a donation to a recognised UK charity, large or small, regular or one-off, can use Gift Aid to increase their donation.

If you give £1 in the normal way, the charity will receive precisely £1. But if you tick a box to say you would like to Gift Aid your £1 during your donation, the charity will receive £1.28 - in other words increasing the value of your gift by 28%.

You just need to give a simple Gift Aid declaration to the charity and pay enough tax to cover the amount reclaimed. The charity then claims back the basic rate income tax you have already paid. If you are a higher rate taxpayer, you can claim a personal benefit - worth 23 pence for every £1 donated. You can either claim this as a personal benefit or choose to give it to charity.

Anyone who has paid enough income tax or capital gains tax in the current financial year to cover the amount reclaimed by the charity can use Gift Aid. So, if you give £100 you need to have paid at least £28 in income tax or capital gains tax. You need to complete a simple declaration, giving the charity your name, full address and an acknowledgement that you are aware of the requirement to have paid enough tax. This can be done by giving a simple declaration in writing, over the phone or online. If you are a higher rate taxpayer, you can reclaim 18% personal tax relief (the higher rate, 40% minus the basic rate, 22%) on your donation. This works out at 23 pence for every pound you donate. Since April 2003, higher rate taxpayers have been able to claim this in their tax return for the previous year, rather than wait until they complete the return for the year the gift was made.

To learn more about Gift Aid go to:
http://www.hmrc.gov.uk/charities/gift-aid.htm