Tax year: 2026/27 | Last reviewed: 2 October 2026
Gift Aid lets charities claim an extra 25p for every £1 you donate, at no cost to you. If you pay tax at the higher or additional rate, you can also claim relief for yourself through your tax return. It is one of the most frequently missed claims we see.
How Gift Aid works
When you donate and tick the Gift Aid box, the charity treats your gift as having had basic rate tax deducted. It reclaims that 20% from HMRC, so a £100 donation becomes £125 for the charity.
You must have paid at least as much income tax or capital gains tax in the year as the charity reclaims. If you do not, HMRC can ask you to pay the difference.
Extra relief for higher earners
Your basic rate band is extended by the gross donation, so more of your income is taxed at 20% instead of your higher rate.
- Higher rate taxpayer (40%): £125 gross x 20% = £25 back. Your £100 donation costs you £75.
- Additional rate taxpayer (45%): £125 x 25% = £31.25 back. Your £100 donation costs you £68.75.
You claim this by entering your Gift Aid donations on your Self Assessment tax return. It is not given automatically.
Gift Aid and the £60,000 and £100,000 thresholds
Gift Aid donations reduce your adjusted net income by the gross amount. That makes them a way to reduce the High Income Child Benefit Charge or restore the Personal Allowance. For someone with income of £105,000, a £4,000 net donation (£5,000 gross) restores £2,500 of Personal Allowance as well as the higher rate relief, so the donation effectively costs £2,000.
Carrying donations back
You can elect to treat donations made in the current tax year as if they were made in the previous year, as long as:
- the election is made on the previous year’s tax return, and
- that return is filed by 31 January.
This is useful if you were a higher rate taxpayer or over £100,000 last year but not this year. For example, donations made between 6 April 2026 and the date you file your 2025/26 return can be carried back to 2025/26.
Gifts of shares and property
Giving listed shares, unit trusts or land to charity gets income tax relief on the full market value, and there is no capital gains tax on the gift. For people with large unrealised gains, this can be more efficient than selling and donating cash.
Company donations
Limited companies do not use Gift Aid. Instead, donations to charity are deductible from profits for corporation tax. Payroll giving through an employer also gives relief at your top rate automatically.
Keep a record
Keep a list of donations, dates and charities, and the Gift Aid declarations you made. Online donation platforms usually email confirmations, which are enough.
FAQs
Do I need to file a tax return to claim higher rate Gift Aid relief?
If you do not already file, you can ask HMRC to adjust your tax code instead. If you do file, include the gross donations on your return.
Can I claim Gift Aid if I do not pay tax?
No. Do not tick the box if you do not pay enough tax to cover the 25%.
What else should I include?
Our personal tax return checklist covers everything.
Talk it through with Digivolve
Send us your donation records with your tax return information and we will make sure every penny of Gift Aid relief is claimed.
This article is general information based on the rules for the 2026/27 tax year as at October 2026. It is not personal tax advice. Rates and thresholds can change, so please speak to us before acting.