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Giving to charity under Gift Aid can result in a lower tax bill for the donor.

Making a Gift Aid donation will reduce your tax bill for the year in which the donation is made if your total income is above the 40% threshold (£50,270 for 2022/23).

Taxpayers who are resident in Scotland can save tax with Gift Aid donations if their total income. Including earnings, is above the 21% threshold (£25,688 for 2022/23). Alternatively, you can shift the tax benefit back one year by telling HMRC on your tax return. This can be useful if your marginal tax rate was higher last year.

To carry back the Gift Aid donation, it must be made before you file your tax return for the earlier tax year. Say you make a Gift Aid donation of £2,000 on 21 December 2022. If you submit your 2021/22 tax return after that date (it’s due by 31 January 2023) you can include a claim in that return to carry back the £2,000 donation; this will reduce your 2021/22 tax liability.

Gift Aid can reduce your income used to calculate the clawback of Child Benefit (income over £50,000) and

the reduction in personal allowance (income over £100,000). It can also increase your higher rate or additional rate threshold. Which determine whether you receive a Personal Savings Allowance of £1,000, £500 or nil.

To make a valid Gift Aid donation, you must declare that you will pay sufficient income tax and/or CGT to cover 25% of the value of your gift in the year the gift is made (or in the previous year if a carry back claim is being made). This is the amount of tax that the charity reclaims from HMRC.

Please contact us if you need to discuss the tax relief available on your charitable donations


Consider carrying back charitable donations when completing your next tax return.