Gift Aid increases the value of donations to charities by allowing us to reclaim basic rate tax on your gift. If you pay a 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.
Gift Aid donations are regarded as having basic rate tax deducted by the donor. We 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.
Basic rate tax is 20%, so this means that if you give £10 using Gift Aid, it’s worth £12.50 to the charity. For donations between 6 April 2008 and 5 April 2011 we will also get a separate government supplement of three pence on every pound you give.
How to make a gift aid donation
In order to make a Gift Aid donation you’ll need to make a Gift Aid declaration. We have prepared a simple form which lays out the information that you need. You can download this form [here].