Gift Aid
The UK scheme that adds 25p to every £1 a taxpayer gives a charity or CASC.
Gift Aid lets a UK charity or community amateur sports club claim back 25p from HMRC for every £1 an individual donates, as long as the donor has made a Gift Aid declaration and has paid at least as much Income Tax or Capital Gains Tax in the tax year as all the charities and CASCs they give to will claim.
Claims are made through HMRC’s Charities Online service, with the gifts listed on HMRC’s schedule spreadsheet (up to 1,000 lines) or submitted through software for larger claims, within 4 years of the end of the financial period the gift was received in. Gifts from limited companies, payments for goods or services and membership fees paid to a CASC do not qualify. Small cash and contactless gifts of £30 or less can earn a top-up without a declaration under the small donations scheme.
Worked example
Three donors with declarations give £120, £60 and £240 in a quarter. The charity lists the three gifts on HMRC’s schedule, totalling £420, and claims £420 × 25p = £105.
Common mistake
Claiming on gifts without a declaration that covers them. The declaration is what makes a gift claimable; keep one for every donor, for 6 years from the end of the accounting period it relates to — or, for a declaration covering future gifts, while the donor keeps giving and then 6 years from the final donation.
Grounded in GOV.UK — Claiming Gift Aid as a charity or CASC guidance. Figures last checked . General information, not tax advice.
Related terms
Gift Aid declaration
The donor’s permission for a charity or CASC to claim Gift Aid on their gifts.
CASC (community amateur sports club)
A UK sports club registered with HMRC for Gift Aid and rates relief.
CIO (charitable incorporated organisation)
A charity with its own legal identity, registered only with the Charity Commission.
Restricted fund
Money given for a stated purpose, to be spent only on that purpose.
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Questions about this term
Gift Aid: common questions
- How much does Gift Aid add to a £50 donation?
- £12.50. The charity or CASC claims 25p for every £1 donated, so a £50 gift from a donor who has made a declaration and paid enough UK tax becomes £62.50 for the organisation once HMRC pays the claim.
- Who can claim Gift Aid?
- Charities and community amateur sports clubs that HMRC recognises for tax purposes. A charity in England and Wales with income under £5,000 that does not have to register with the Charity Commission can still apply to HMRC for recognition so that it can claim.
- What is the time limit for a Gift Aid claim?
- Four years from the end of the financial period the donation was received in: the tax year for a charitable trust, and the accounting period for a CASC, a CIO or a charitable company. Small donations scheme claims are due within 2 years of the end of the tax year.
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