Gift aid: making a gift go further

Gift aid exists to encourage individuals (which includes partnerships and sole traders) to make charitable donations.

Many taxpayers give to charity (or community amateur sports clubs which also qualify for gift aid) from a purely altruistic perspective but by properly utilising gift aid they can make their gift go further boosting the value of what they give to the charity of their choice as well as potentially obtaining an element of tax relief themselves.

Back to basics

From April 2024 (1 April for companies and charitable entities 5 April for individuals) taxpayers will need to review and understand whether their charitable donations are going to UK or non-UK charities as there will be a significant difference to the tax benefits.

Previously charities in the EU Norway Iceland or Liechtenstein were able to benefit from gift aid and UK taxpayers who...