General2026/27

What is Gift Aid? UK Definition 2026/27

Verified by ICAEW, ACCA & AAT
Updated April 2026

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 bonus25p per £1
Higher rate reliefExtra 20%
Additional rate reliefExtra 25%
Declaration requiredYes

How Gift Aid Works — Example

Gift Aid tax relief
  1. 1Donation: £1,000
  2. 2Charity claims (25%): £250
  3. 3Total charity receives: £1,250
  4. 4Higher rate taxpayer relief: £1,250 × 20% = £250
  5. 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 Aid

Frequently Asked Questions about Gift Aid

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.