What is Gift Aid?
Gift Aid is an initiative that encourages all taxpayers to complete and sign a declaration stating that all donations made by the signatory to a charitable organisation should be treated as “Gift Aid” donations. Under this declaration, our parish receives a tax refund from HM Revenue & Customs (HMRC) equivalent to 25 pence for every pound donated by the contributor.
Who can sign the Gift Aid declaration?
Anyone who receives any form of income (such as salary, pension, or bank interest on savings) and pays UK Income Tax is eligible to sign the declaration. The Gift Aid form can be signed by both UK residents and individuals staying in the UK temporarily, provided they pay UK Income Tax. In addition to those paying the basic (20%) or higher (40%) tax rates, individuals paying a lower tax rate (10%) can also participate in the Gift Aid scheme, as long as the total tax paid in a given year is at least equal to the amount of tax reclaimed by the parish.
What conditions must be met for a donation to the parish to qualify as Gift Aid?
For a donation to the parish to qualify as “Gift Aid”, three conditions must be met:
- The donor must have previously signed a Gift Aid Declaration.
- The donor must pay tax in the United Kingdom.
- The amount of tax reclaimed by the parish does not exceed the amount of tax paid by the donor in the relevant tax year.
The Gift Aid Declaration Form is available for download below.