Gift Aid
Reclaiming basic rate tax on donations. Worth 25% and frequently unclaimed.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Gift Aid allows a charity to reclaim basic rate tax on donations from UK taxpayers, adding 25p to every £1 donated.
Why it matters
It is free money the donor has already paid in tax, and a large share of eligible donations are never claimed because no declaration was collected.
What it looks like in practice
A valid declaration is required, and the donor must have paid enough UK tax to cover it. Records must be kept for six years.\n\nThe Gift Aid Small Donations Scheme allows a top-up on small cash and contactless donations without declarations, within limits.
What to watch out for
Claiming on donations that are not gifts — payments for goods, services, event tickets or membership benefits above the permitted limits.
Where to get proper advice
HMRC's charities helpline, and the Charity Commission. Your charity's accountant for the claim mechanics.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
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