Gift Aid

Under UK tax law charities are encouraged to increase a contribution’s value by using   a Government approved and Inland Revenue administered plan called Gift Aid.  A UK registered charity can, with a donor’s permission, recover the basic rate tax that a donor has paid on a donation.  It doesn’t cost the donor anything.

At current tax rates, (April 2008) donations can be increased by 25% in reclaimed Gift Aid tax and, between 6 April 2008 and 5 April 2011, the government will also add transitional relief of a further 3p for every pound given making a total of 28%.

UK Government Information about Gift Aid

This is the link to the Inland Revenue’s website explaining Gift Aid.  It is designed for a charity but is useful for a donor

http://www.hmrc.gov.uk/charities/gift_aid/

Giving Through the Self Assessment Return

In addition to the Gift Aid scheme, HMR&C have introduced a new way of donating for people who complete a Self-Assessment tax return.  The UKFC participate in this scheme which will allow any individual to nominate our charity to receive all or part of their tax repayment as a donation.  This scheme has real advantages for participating charities:

• The donation will be paid directly into the charity’s bank account
• The SA Tax return form includes a Gift Aid declaration
• The Gift Aid will be paid without the charity having to make a repayment claim
• Charities will still benefit from Gift Aid even if the donor opts to remain anonymous

The donor must enter the identification code of their chosen charity on their SA tax return. The Identification Code for the UK Fund For Charities is: