Gift Aid and Gift Aid Small Donation Scheme

Gift Aid Scheme

An overview of the Gift Aid scheme

What is Gift Aid?

Gift Aid is a tax relief allowing UK charities to reclaim an extra 25% in tax on every eligible donation made by a UK taxpayer. This will make your gift go further for the charity you are supporting.

When not to claim Gift Aid:

You should not claim gift aid when:

Donating to a Charity in return for benefits like tickets (raffles, events and auctions) or goods and services (including ‘experience’ days). This is because they are not ‘freewill’ gifts – you are getting something in return for your donation. If we decide a donation has been incorrectly marked as eligible for Gift Aid, we can’t submit it.

Donating to a Charity on behalf of someone else or a group of people. For example, if a friend gives you £20 which you donate to your Fundraising Page using your own card and details. Even if your friend is a UK taxpayer, the donation is not eligible because HMRC needs to know the details of the person who is actually contributing the funds.

Donating to a Charity on behalf of a company. You can only make Gift Aid declarations on your own taxpayer status when spending your own money. However, a company can claim tax relief on the donation when donating directly to the charity.

Donating to a family member who’s taking part in an event and their charity is contributing to the cost. For example, if you’re donating to a close family member who is doing an overseas trek and the charity is paying for the cost of their trip.

How it benefits to higher-rate taxpayers

If you pay tax at the higher rate, you can reclaim tax relief on your gross donation at 20% (i.e. the difference between the higher rate of tax at 40% and the basic rate at 20%). At TPCC we keep an accurate record of your donations to help you claim tax relief if you need to. We will give you copy of your donation history, so you attach it to your tax return.

What happens if I am not a UK taxpayer?

The Gift Aid scheme is unique to the UK. If you are not a UK taxpayer, you can still donate to your chosen charity, but your donation will not be eligible for Gift Aid.

When donor lives outside the country: What if I don’t live in the UK?

A person living overseas can still claim Gift Aid if they are a UK taxpayer and can satisfy the Gift Aid declaration in the donation process.

Gift Aid declaration – Sample form for your download