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What Is Gift Aid? A Simple Guide for UK Donors

Published on 23 March 2026 12:40 PM

Gift Aid is a UK government scheme that allows charities to claim extra money on donations made by UK taxpayers, at no additional cost to the donor. 

When you choose to add Gift Aid to your donation, your gift is increased by 25%. This means that for every £1 you donate, the charity can claim an additional 25p from HM Revenue & Customs (HMRC).

Your donation is worth more to the charity without costing you anything extra. 

For charities like Age UK Cambridgeshire & Peterborough, Gift Aid makes a significant difference, helping us support more older people across Cambridgeshire and Peterborough.

How Does Gift Aid Work? 

When you donate to a registered UK charity and complete a Gift Aid declaration, the charity can claim back the basic rate of Income Tax (20%) that you’ve already paid on that money. 

Example 

  • If you donate £20, we can claim an extra £5. 
  • Your £100 donation becomes £125. 
  • It does not cost you anything extra. 

The additional funds come directly from the government, not from you. 

Who can use Gift Aid? 

You can add Gift Aid to your donation if: 

  • You are a UK taxpayer 
  • You have paid at least as much Income Tax or Capital Gains Tax in that tax year as the charity will claim back 

You simply need to complete a Gift Aid declaration when you donate. This can usually be done online or by filling in a short form. 

If you are unsure whether you qualify, you can find further information on the HM Revenue and Customs website or speak to a tax adviser.

What if I pay higher-rate tax? 

If you are a higher-rate or additional-rate taxpayer, you can claim back the difference between the basic rate of tax and the rate you pay through your Self Assessment tax return. 

This means Gift Aid can benefit both the charity and you.

Why Gift Aid matters 

By choosing Gift Aid, you are increasing the value of your donation by 25%, helping us to: 

  • Provide information and advice services 
  • Tackle loneliness and isolation 
  • Offer practical support to older people 
  • Deliver vital community services across Cambridgeshire and Peterborough 

It is a simple step that makes a real difference to local older people who need support.

 

What Donations Qualify? 

Gift Aid applies to: 

  • One-off donations 
  • Regular direct debit donations 
  • Sponsorships 
  • Membership fees (if they don’t provide significant benefits in return) 

It does not apply to: 

  • Payments for goods or services 
  • Raffle tickets 
  • Charity event tickets 
  • Donations made on behalf of someone else 

Final Thoughts 

Gift Aid is one of the simplest and most effective ways to support charities in the UK. By ticking a box when you donate, you can increase your impact by 25% at no additional cost. 

If you’re eligible, it’s almost always worth doing.