Gift Aid is a scheme run by the government that enables charities to increase the value of donations made by reclaiming basic rate tax that has been paid on the gift. At the moment, we can claim 25p per £1 donated, so on a gift of £100, we will actually receive an extra £25, at no cost to the donor, which we then use to fund the whole of LandAids work.
To qualify for Gift Aid, you need to be a UK taxpayer and have paid enough tax to cover the amount of tax reclaimed by all charities on all your donations for each tax year (6th April one year to 5th April the next). Apart from tax on income from a job or self-employment, other types that are acceptable are:
- Tax deducted at source from savings interest
- Tax on state pension and/or other pensions
- Tax on investment or rental income (including tax credits on UK dividends)
- Capital Gains Tax on gains
Other taxes such as VAT and council tax do not qualify, nor does any non-UK tax.