The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. The Trust take your donation - which is money you've already paid tax on - and reclaim the basic rate tax from HM Revenue & Customs (HMRC) on its 'gross' equivalent - the amount before basic rate tax was deducted.
In other words if the basic rate tax is 20 per cent, it means that if you give the Trust £100 using Gift Aid, it’s worth £125 to us!
How to make a donation using Gift Aid
In order to make a Gift Aid donation you’ll need to make a Gift Aid declaration. The charity will normally ask you to complete a simple form - one form can cover every gift made to the Trust for whatever period you choose, and can cover gifts you have already made and/or gifts you may make in the future.
A Gift Aid declaration must include:
your full name
your home address
the name of the charity
details of your donation, and it should say that it's a Gift Aid donation
Claiming back higher rate tax
If you are ‘fortunate’ to pay higher rate tax, you can claim the difference between the higher rate of tax 40 and/or 50 per cent and the basic rate of tax 20 per cent on the total 'gross' value of your donation to the Trust.
For example, if you donate £100, the total value of your donation to the charity is £125 - so you can claim back:
You can make this claim on your Self Assessment tax return.