Gift Aid

The Gift Aid scheme allows tax payers making charitable donations to UK registered charities or Community Amateur Sports Clubs (CASC) to add the basic rate tax component of the donation by way of covenant with the charity, or club. As eligible donations are added to the basic rate tax threshold, higher rate tax payers benefit from tax relief. It is also possible to include donations made in the following tax year up to the point of filing a tax return for the current due tax year.

If there is insufficient tax generated to cover the donations, the difference has to be paid by the taxpayer by virtue of it being added to their tax bill.