Watch/Listen to Laura Sant explain Gift Aid.

Giving to charity feels good. But what if your donation could go even further, without costing you a penny more?

If you’re a UK taxpayer, ticking the Gift Aid box when you donate to a UK-registered charity could make a real difference. Not only does the charity receive more money, but you may also benefit from additional tax relief if you’re a higher-rate or additional-rate taxpayer.

Here’s how it works and why it matters.

What is Gift Aid?

Gift Aid is a UK government scheme that allows charities to claim an extra 25p for every £1 you donate, as long as you're a UK taxpayer.

So if you donate £100, the charity receives £125 thanks to HMRC topping up your gift.

That extra money doesn’t cost you anything, it comes directly from the tax you’ve already paid.

Can I Use Gift Aid?

You can tick the Gift Aid box if:

• You are a UK taxpayer
• You are currently paying UK income or capital gains tax
• The donation is made to a UK-registered charity

Just tick the box when donating (either online or via a form), and HMRC will do the rest, adding 25% to your donation at no cost to you.

Are You a Higher-Rate or Additional-Rate Taxpayer?

Here’s where things get even more interesting.

If you pay tax at 40% or 45%, you may be able to claim the difference between your tax rate and the basic 20% rate on your donation through your Self-Assessment tax return.

Example:

You donate £100.
The charity gets £125 thanks to Gift Aid.
As a 40% taxpayer, you could claim an extra £25 in tax relief on your return.

That means giving to charity can reduce your tax bill.

What If I’m Not a UK Taxpayer?

If you're not paying UK tax, you shouldn’t tick the Gift Aid box.

Why? Because HMRC may require you to repay the value of the Gift Aid, and that’s not a surprise anyone wants at the end of the tax year.

What About Overseas Charities?

Only donations to UK-registered charities qualify for Gift Aid and tax relief. If you donate to a charity or its office outside the UK, you won’t be eligible.

So always check the status of the charity before you give.

Make the Most of Your Giving

Gift Aid is one of the simplest ways to make your generosity go further. Whether you’re supporting a local cause or a national charity, understanding how it affects your taxes ensures your donation counts in more ways than one.

Get the Right Tax Advice

If you're unsure whether you qualify for Gift Aid, or want to claim higher-rate relief on your charitable giving, we're here to help.

At LSR Partners, you get clear, expert advice on how to pay the right tax, in the right place, at the right time.Whether you’re in the UK or living abroad, we’ll guide you through your options.

Contact us today to talk through your charitable giving, tax planning, or any other UK tax matter.