Gift aid is tax relief on money donated to UK charities.
HM Revenue & Customs treat donations as if the donor had already deducted basic rate tax from them.
The charity can then reclaim this tax to increase the value of a donation.
Gift aid rules - Donors must :-
pay enough UK income tax and/or capital gains tax themselves to cover the amount of tax the charity will reclaim
give the charity a gift aid declaration, which should include
- their name
- their home address
- the charity’s name
- details of the donation – saying that it is a gift aid donation
- confirmation that they have paid UK tax – to cover the tax the charity
will reclaim.
A declaration can be made to cover individual donations,a series of donations, can cover donations made during a specified period or to cover all future donations. They can also be backdated for up to 6 years prior to the date of the declaration provided the donation was made since 6 April 2000.
Tax relief if a customer pays the:-