Overview
- Gift Aid lets charities reclaim basic-rate income tax, effectively boosting donations by 20%.
- People taxed at 40% on income above £50,270 in England, Wales and Northern Ireland can reclaim the additional 20% via their self-assessment return.
- The reclaim is capped by how much tax the donor actually paid at the higher rate, as Lewis stressed.
- Additional-rate taxpayers paying 45% can reclaim 25% on Gift Aid donations.
- Lewis urged donors to record Gift Aid gifts on their tax returns or give details to whoever files, noting an example where a £133 donation yields £166 for the charity and a £33 reclaim, costing the donor £100.