What is Gift Aid? UK Definition 2026/27
Quick Answer
A scheme allowing charities to claim 25p extra for every £1 you donate.
Definition of Gift Aid
Gift Aid lets UK charities claim an extra 25p for every £1 you donate, at no cost to you. If you're a higher or additional rate taxpayer, you can claim back the difference between your rate and basic rate through Self Assessment. You must pay enough UK tax to cover the Gift Aid claimed.
Gift Aid — Key Facts for 2026/27
| Charity bonus | 25p per £1 |
| Higher rate relief | Extra 20% |
| Additional rate relief | Extra 25% |
| Declaration required | Yes |
How Gift Aid Works — Example
- 1Donation: £1,000
- 2Charity claims (25%): £250
- 3Total charity receives: £1,250
- 4Higher rate taxpayer relief: £1,250 × 20% = £250
- 5Net cost of £1,250 gift: £750
How Gift Aid Affects Your Tax
Gift Aid is valuable for charities and taxpayers. Higher rate taxpayers can claim significant tax relief. Gift Aid can also be used to reduce income to avoid the £100,000 Personal Allowance taper or High Income Child Benefit Charge.
Official HMRC Guidance on Gift Aid
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
HMRC: Gift AidFrequently Asked Questions about Gift Aid
Related Tax Terms
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.