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Giving to charity under Gift Aid can result in a win/win for both the donor and the charity.

If your total income is above the higher rate threshold (£45,000 for 2017/18 or £43,000 in Scotland), making a Gift Aid donation will reduce your tax bill for the year in which the donation is made. Alternatively, you can shift the tax benefit of some or all of that gift back one year, by telling HMRC on your tax return. This can be useful if your marginal tax rate was higher last year than in the current tax year.


Gift Aid can reduce your income used to calculate the clawback of child benefit (income over £50,000) and the reduction in personal allowance (income over £100,000). It can also increase your higher rate or additional rate threshold, which determine whether you receive a personal savings allowance of £1,000, £500, or nil.

To make a valid Gift Aid donation, you must declare that you will pay sufficient tax to cover 25% of the value of your gift in the year the gift is made.

Action Point!
Do you want to make charitable donations before you complete your tax return?

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Clarke Nicklin House, Brooks Drive, Cheadle Royal Business Park, Cheadle, Cheshire, SK8 3TD. Registered Number OC309225.
The firm is registered to carry on audit work in the UK & Ireland. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001178544. The professional rules applicable are the Audit Regulations and Guidance which can be found at www.icaew.com/regulations, and the International Standards on Auditing (UK and Ireland) which can be found at www.frc.org.uk/apb/publications/isa.cfm.