A scheme that allows charities to claim back the basic rate tax on your donations.
Gift Aid allows charities and Community Amateur Sports Clubs (CASCs) to reclaim 25p from HMRC for every £1 you donate — at no extra cost to you. You must pay enough UK Income Tax or Capital Gains Tax to cover the tax the charity reclaims. Higher and additional rate taxpayers can claim the difference between the basic rate (20%) and their marginal rate through Self Assessment or by contacting HMRC.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.