Gift Aid on £1,000 Donation — 2025-26
How much extra the charity receives and how much higher and additional rate taxpayers can claim back.
Gift Aid breakdown — £1,000 donation
| Taxpayer type | Charity receives | You claim back | Your effective cost |
|---|---|---|---|
| Basic rate (20%) | £1,250 | £0 | £1,000 |
| Higher rate (40%) | £1,250 | £250 | £750 |
| Additional rate (45%) | £1,250 | £313 | £687 |
HMRC pays £250 Gift Aid top-up directly to the charity. Higher and additional rate taxpayers claim personal relief via Self Assessment.
Frequently asked questions
How does Gift Aid work on a £1,000 donation?
When you donate £1,000 with Gift Aid, HMRC tops up the donation by £250 so the charity receives £1,250 in total. This is because Gift Aid allows charities to reclaim the 20% basic rate tax already paid on the donation, making it worth 25% more at no extra cost to you.
Can higher rate taxpayers claim more Gift Aid relief?
Yes. A 40% (higher rate) taxpayer can claim back £250 via their Self Assessment tax return, reducing the effective cost of a £1,000 donation to £750. A 45% (additional rate) taxpayer can claim £313, reducing the effective cost to £687. The claim is made by entering total Gift Aid donations on the Self Assessment return.
What is a Gift Aid declaration?
A Gift Aid declaration is a statement you sign (or confirm online) confirming that you are a UK taxpayer and that you want the charity to claim Gift Aid on your donation. It can cover a single donation or all past and future donations to that charity. You must have paid enough UK income tax or capital gains tax to cover the amount the charity reclaims. If your tax position changes, you must notify the charity.