Giving to Charity - How it affects your tax return in 2024

Did you know that your donations to charity can effectively reduce the Tax paid to HMRC by using Gift Aid? Well, relatively speaking that is. When you make your 'Gift Aid' donation to a charity, you'll need to make a Gift Aid declaration (typically a simple form or if online a simple confirmation box).

Gift Aid increases the value of donations to charities and Community Amateur Sports Clubs (CASCs) by allowing them to reclaim basic rate tax on your gift. If you pay higher rate tax you can claim extra relief on your donations. If you claim age-related allowances or tax credits, Gift Aid donations can sometimes increase your entitlement.

Okay, that's great, but how does it benefit me?

If you pay higher rate tax, you can claim the difference between the higher rate of tax 40 and/or 45 per cent and the basic rate of tax 20 per cent on the gross value of your donation to the charity. You can claim back this amount on your self-assessment tax form.

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