Last updated: 16 October 2026
Do you get tax relief at your top rate on charity donations?
Yes. If you donate to a charity using Gift Aid, the charity claims basic rate tax relief and you can claim the difference between the basic rate and your top rate through your tax return. Higher rate taxpayers get relief at 40% and additional rate taxpayers at 45%.
How Gift Aid works
When you make a Gift Aid donation, your gift is treated as if 20% tax had already been deducted. The charity claims that 20% back from HMRC.
- You give £80
- The charity claims £20
- The gross donation is £100
If you pay higher or additional rate tax, your basic rate band is extended by the gross donation. This means more of your income is taxed at 20% instead of 40% or 45%.
Extra relief by tax band
| Your top rate | You give | Charity gets | Extra relief you claim | Net cost to you |
| 20% | £800 | £1,000 | £0 | £800 |
| 40% | £800 | £1,000 | £200 | £600 |
| 45% | £800 | £1,000 | £250 | £550 |
Worked example
Helen earns £160,000 and gives £8,000 to charity under Gift Aid. The charity receives £10,000. Helen claims extra relief of £2,500 (25% of £10,000) through her Self Assessment return, so her donation costs her £5,500.
Carrying back a donation
You can elect to treat a donation as made in the previous tax year, if you make the donation before you file that year’s return and no later than 31 January. This is useful if your tax rate was higher last year.
Restoring your personal allowance
Gift Aid donations reduce your adjusted net income. If your income is between £100,000 and £125,140, every £1 of gross donation can restore 50p of personal allowance, giving effective relief of up to 60%.
Conditions
- You must pay at least as much income tax or capital gains tax in the year as the charity claims back.
- You need to sign a Gift Aid declaration.
- You must not get a significant benefit in return for the gift.
Other tax-efficient ways to give
- Payroll giving: donations come out of your pay before tax, so you get immediate relief at your top rate.
- Gifts of shares or land: relief on the full market value and no CGT.
- Gifts in your will: exempt from inheritance tax, and leaving 10% or more of your net estate to charity reduces the IHT rate to 36%.
How to claim the extra relief
Enter the total Gift Aid payments you made in the tax year on your Self Assessment return. If you do not normally file a return, you can ask HMRC to adjust your tax code instead. Keep a list of donations with dates, amounts and charity names, as HMRC may ask for proof.
Frequently asked questions
Do Scottish taxpayers get relief at Scottish rates?
Yes, relief is given at their own rates, such as 42%, 45% or 48%.
Can my company make Gift Aid donations?
No. Companies get corporation tax relief on donations instead.
Do I need receipts?
Keep a record of each donation and the charity’s details.
What if I don’t pay enough tax?
You may have to pay HMRC the difference.
Related: charitable donations and your personal allowance, donating to charity to reduce IHT and charity tax compliance changes.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with Gift Aid and higher rate tax relief. See our tax refund accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
