Gift Aid is a Government initiative that promotes charitable giving by enabling UK charities to reclaim tax from the Inland Revenue for every £1 donated by UK taxpayers. All that is required from donors or sponsors is a declaration that income tax, or capital gains tax, paid for the year will at least equal the amount of the tax reclaimed.

Gift Aid costs donors nothing and can greatly increase charity income. Charities are able to claim back around 28% of the value of donations – donors who are higher rate tax payers can claim back the difference above this standard rate for themselves on their tax return.

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