Gift Aid is a UK tax relief scheme that allows charities to reclaim basic rate income tax (20%) on donations made by UK taxpayers. When you donate £1, the charity claims an extra 25p from HMRC, making your donation worth £1.25. You must have paid enough UK income tax or Capital Gains Tax to cover the Gift Aid claimed.

How does higher rate Gift Aid relief work?

Higher rate (40%) and additional rate (45%) taxpayers can claim the difference between their tax rate and the basic rate (20%) via Self Assessment. On a £100 donation grossed up to £125: a 40% taxpayer reclaims £25 extra, an additional rate taxpayer reclaims £31.25 extra. The charity still claims the basic rate portion.

Gift Aid Calculator

Q: How does Gift Aid work for Scottish taxpayers?

Scottish taxpayers have different income tax rates (19% to 48%), but the Gift Aid gross-up is always at the UK basic rate of 20%. The charity reclaims at 20% regardless. Scottish higher rate (42%) taxpayers can claim the additional 22% via Self Assessment. Scottish starter rate (19%) taxpayers may owe HMRC the 1% difference.

Q: What if I haven't paid enough tax to cover Gift Aid?

You must have paid at least as much income tax and/or CGT as the total Gift Aid claimed by all charities on your donations. If not, HMRC will ask you to repay the shortfall. National Insurance, Council Tax, and VAT do not count. Use the Tax Liability Check tab to verify your position before donating.

Q: What is the difference between Payroll Giving and Gift Aid?

With Gift Aid, you donate from after-tax pay and the charity reclaims 20% from HMRC. With Payroll Giving, donations are deducted from gross pay before tax, giving immediate relief at your marginal rate. Payroll Giving is simpler for higher rate taxpayers but requires your employer to offer a scheme, and the charity does not get the 25% top-up.

Calculate Gift Aid tax relief for 2025/26. See how much more your charity receives with the 25% top-up, claim higher rate relief, and check your tax liability covers your donations.

See how much more your charity receives with Gift Aid and your personal tax relief

Donation amount

The amount you give to charity

Your tax band

Higher rates get additional personal relief

I am a Scottish taxpayerScottish income tax rates differ from rUK. Charity still reclaims at 20%.

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How to Use This Calculator

Gift Aid Benefit tab

Enter your donation amount and select your tax band. The calculator shows how much the charity receives after Gift Aid (25% gross-up) and your personal tax relief if you are a higher or additional rate taxpayer. Toggle "Scottish taxpayer" if you pay Scottish income tax rates.

Annual Giving Plan tab

Enter your monthly donation to see the full annual picture: total charity receives, your tax relief, and net cost. Includes a 5-year projection to show the cumulative impact of regular giving with Gift Aid.

Tax Liability Check tab

Enter your total Gift Aid donations and total income tax + CGT paid this tax year. The calculator checks whether you have paid enough tax to cover all Gift Aid claims. If there is a shortfall, it tells you the maximum safe Gift Aid amount.

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The Formula

Gift Aid uses a gross-up calculation based on the basic rate of income tax (20%):

Gross Donation = Donation Amount × 1.25 (i.e., ÷ 0.80)

Charity Reclaims = Gross Donation − Donation Amount
= Donation Amount × 0.25

Higher Rate Relief (40% taxpayer):
Additional Relief = (40% − 20%) × Gross Donation
= 20% × Donation × 1.25

Additional Rate Relief (45% taxpayer):
Additional Relief = (45% − 20%) × Gross Donation
= 25% × Donation × 1.25

Net Cost = Donation − Additional Relief

Tax Liability Rule:
Income Tax + CGT Paid ≥ Total Gift Aid Claimed by All Charities

The charity always reclaims at the basic rate (20%). Higher and additional rate taxpayers claim the difference between their marginal rate and 20% via their Self Assessment tax return. Scottish taxpayers follow the same gross-up at 20%, but their personal relief is based on their Scottish income tax rate.

Example

Rachel — Higher Rate Taxpayer, Donates £200/month to Charity

Rachel earns £65,000 and pays 40% income tax on her earnings above the higher rate threshold. She donates £200 per month to her local charity with Gift Aid.

Annual breakdown

Monthly donation£200

Annual donations (£200 × 12)£2,400

Gross donation (£2,400 × 1.25)£3,000

Charity reclaims Gift Aid£600

Total charity receives£3,000

Rachel's higher rate relief (20% × £3,000)£600

Rachel's net cost (£2,400 − £600)£1,800/year

Rachel donates £2,400. The charity receives £3,000 (25% more). Rachel claims £600 back on her Self Assessment, making her true cost just £1,800 per year — or £150 per month instead of £200.

FAQ

What is Gift Aid? ▼

Gift Aid is a UK tax relief scheme that allows charities and community amateur sports clubs (CASCs) to reclaim basic rate income tax on donations made by UK taxpayers. When you donate £1, the charity can claim an extra 25p from HMRC, making your £1 donation worth £1.25 to the charity. You must have paid enough UK income tax or Capital Gains Tax in the tax year to cover the amount reclaimed by all charities on your Gift Aid donations. Gift Aid is free to use — you simply sign a Gift Aid declaration with the charity.

How does higher rate relief work? ▼

If you pay income tax at 40% (higher rate) or 45% (additional rate), you can claim additional tax relief on your Gift Aid donations through your Self Assessment tax return. The charity reclaims tax at the basic rate (20%). You claim the difference between your rate and 20%. For example, on a £100 donation grossed up to £125: a 40% taxpayer can claim 20% × £125 = £25 extra. An additional rate (45%) taxpayer can claim 25% × £125 = £31.25 extra. This reduces your taxable income or generates a refund.

How does Gift Aid work for Scottish taxpayers? ▼

Scottish taxpayers have different income tax rates (starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%), but the Gift Aid gross-up is always based on the UK basic rate of 20%. The charity always reclaims at 20% regardless of where you live. Scottish taxpayers at the higher rate (42%) can claim the difference (22%) via Self Assessment. However, Scottish starter rate taxpayers (19%) may need to pay HMRC the 1% difference between 20% and 19% on the grossed-up donation. Scottish top rate (48%) taxpayers get the most additional relief: 28% of the gross donation.

What if I haven't paid enough tax to cover Gift Aid? ▼

You must have paid at least as much UK income tax and/or Capital Gains Tax in the tax year as the total Gift Aid claimed by all charities on your donations. If you haven't paid enough, HMRC will ask you to repay the shortfall. Only income tax and CGT count — National Insurance, Council Tax, and VAT do not qualify. Use the "Tax Liability Check" tab to verify your position. If in doubt, you can ask charities not to claim Gift Aid on some donations, or switch to Payroll Giving which does not require a Gift Aid declaration.

What is the difference between Payroll Giving and Gift Aid? ▼

Gift Aid: you donate from your net (after-tax) pay, and the charity reclaims basic rate tax from HMRC. Higher rate taxpayers claim additional relief via Self Assessment. Payroll Giving: your employer deducts the donation from your gross (before-tax) pay, so you get immediate tax relief at your marginal rate and the charity receives the full amount without needing to reclaim anything from HMRC. Payroll Giving is simpler for higher rate taxpayers (no Self Assessment claim needed) and works well for regular donations. However, it requires your employer to offer a Payroll Giving scheme, and the charity does not receive the 25% Gift Aid top-up.

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