Gift Aid is an easy way for charities to increase the value of gifts of money from UK taxpayers by claiming back the basic rate tax paid by the donor.
When an individual, sole trader or partnership gives money to the charity through Gift Aid, the charity can take their donation - which is money they've already paid tax on - and reclaim basic rate tax from HM Revenue & Customs (HMRC) on its ‘gross' equivalent - the amount before basic rate tax was deducted.
If a donor is a higher rate tax payer, they too can benefit from the tax relief as they can claim back the difference between the higher rate of tax at 40 per cent and the basic rate of tax at 20 per cent on the total value of their gross donation.
The Trust can reclaim the basic rate of tax on Gift Aid donations. You can work out the amount of tax we can reclaim by dividing the amount donated by four. This means that for every £1 donated, we can claim 25p.
For further information please contact Marcia McKnight, Head of Communications, on 020 8375 2578 or firstname.lastname@example.org.