Giving to charity through Gift Aid

Gift Aid increases the value of donations to charities and Community Amateur Sports Clubs (CASCs) by allowing them to reclaim basic rate tax on your gift. If you pay higher rate tax you can claim extra relief on your donations. If you claim age-related allowances or tax credits, Gift Aid donations can sometimes increase your entitlement.

How Gift Aid works

The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. Charities or CASCs take your donation - which is money you've already paid tax on - and reclaim the basic rate tax from HMRC on its 'gross' equivalent - the amount before basic rate tax was deducted.

Further information can be found on the HM Revenue and Customs website: http://www.hmrc.gov.uk/individuals/giving/gift-aid.htm.