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Gift Aid Explained

1. What is Gift Aid?

Gift Aid is a tax relief that was introduced in 1990 to encourage gifts of money to charities. Gift Aid enables sums of money given to charity by individual UK taxpayers to be treated as if they were net of basic rate income tax. The charity can then claim repayment equivalent to the basic rate of tax from HM Revenue & Customs (HMRC). Over time Gift Aid as a tax relief has increased in size and scope to become worth £828 million to UK charities in 2006- 07. For example, a gift of £10.00 is treated as if it is a sum of £12.82,
which the charity receives net of £2.82 tax.

2. How does Gift Aid work?

Gift Aid donations are treated as being paid to charity net of the basic rate of income tax. This has recently been reduced from 22 to 20 per cent. If you Gift Aid your donation we will continue to receive an additional 28p for every pound you donate. HMRC will be operating a transitional period for Gift Aid donations made from 6 April 2008 to 5 April 2011, paying a Government supplement of 3p on every pound you give. Donors taxed at the higher rate can claim an additional 18 per cent tax relief (the difference between the higher rate of 40 per cent and the basic rate of 22 per cent) on the grossed up donation (i.e. the deemed £12.82 gift). In order for the charity to claim Gift Aid, the donor must:

" have paid enough UK tax (income tax and/or capital gains tax) for the tax year of donation to cover the
amount of tax the charity will reclaim; and

" make a valid Gift Aid declaration, which should include their name, home address and confirmation that they have paid sufficient UK tax to cover the tax the charity will reclaim.  Declarations can be made to cover individual donations, a series of donations over a specific period, or all future donations.

How do I Gift Aid my donation to you?

Simply download our Gift Aid Declaration Form and send it postal address. Alternatively you can make a verbal Gift Aid declaration over the telephone by contacting us on  01227 865346