How do I get tax relief on charity donations?
You can get tax relief on money you give to charity, mainly through Gift Aid, which lets the charity reclaim basic-rate tax on your gift. Higher and additional-rate taxpayers can claim further relief themselves. There are also tax-efficient ways to donate other assets and to give directly from your pay.
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Check what you're owed →Charitable giving is encouraged through the tax system in several ways. Gift Aid is the most common: by making a declaration, you allow the charity to reclaim the basic-rate tax on your donation, boosting its value. If you pay tax above the basic rate, you can claim the difference between that and your own rate, which many donors forget to do.
Beyond cash gifts, there are other routes. Payroll Giving lets you donate straight from your pay before tax is taken, so you get relief automatically at your highest rate. Gifts of certain assets, such as shares or land, to charity can also attract tax relief, though the rules are more involved and worth checking carefully.
To benefit, you generally need to have paid enough tax to cover what charities reclaim, and keeping good records of your donations is essential, particularly if you want to claim higher-rate relief. Giving tax-efficiently means more of your money reaches the cause and, where you qualify, reduces your own tax bill, so it is worth setting up properly.
How to donate to charity tax-efficiently
- Use Gift Aid. Make a Gift Aid declaration on your cash donations so the charity can reclaim basic-rate tax.
- Consider Payroll Giving. Ask your employer if they offer Payroll Giving to donate from your pay before tax, getting relief automatically.
- Keep donation records. Record charities, amounts and dates so you can claim higher-rate relief and check your tax covers your giving.
- Claim extra relief. If you pay tax above the basic rate, claim the additional relief through Self Assessment or by contacting HMRC.
Frequently asked questions
- What is the simplest way to give tax-efficiently?
- Gift Aid on cash donations. You make a declaration and the charity reclaims basic-rate tax, increasing the value of your gift at no extra cost to you.
- What is Payroll Giving?
- A way to donate directly from your wages before tax is deducted, so you receive relief automatically at your highest rate of tax.
- Can I give assets instead of cash?
- Yes. Donating certain assets such as shares or land to charity can attract tax relief, though these gifts have more detailed rules.
- How do higher earners claim more relief?
- Higher and additional-rate taxpayers can claim the difference between the basic rate and their own rate, usually through Self Assessment.
MoneyFinder is an independent sign-posting service that helps you find financial support you may be entitled to. We are not a government body and do not provide financial advice. Figures are taken from the official sources cited above and were correct when last checked — always confirm current details on the linked GOV.UK pages.