What Is Gift Aid? (UK 2025/26)

Gift Aid is a scheme that lets UK charities reclaim the basic-rate income tax you already paid on your donation. When you tick the Gift Aid box, the charity can claim an extra 25p for every £1 you give — at no extra cost to you. A £100 donation becomes £125 for the charity.

How It Works for Higher-Rate Taxpayers

If you pay tax at 40% or 45%, you can claim back the difference between your rate and the basic rate on your self-assessment tax return. On a £100 donation (worth £125 to the charity), a 40% taxpayer can personally reclaim £25. This makes the true cost of a £125 charity donation just £75 for a higher-rate taxpayer.

Gift Aid and the £100k Trap

Gift Aid donations reduce your adjusted net income. This is the same figure used for the personal allowance taper, Child Benefit High Income Charge, and free childcare eligibility. For someone earning just above £100,000, Gift Aid donations can help bring their adjusted net income back below the threshold — restoring their personal allowance and childcare entitlements.

Rules to Remember

You must have paid enough UK income tax or CGT in the tax year to cover the amount the charity will reclaim. If you have not, HMRC will ask you to make up the shortfall. Gift Aid applies to donations of money only — not goods, services, or time.