A UK government scheme that allows charities to reclaim tax on donations, boosting them by 25%.
Gift Aid is a UK government scheme administered by HMRC that allows registered charities to reclaim the basic rate of income tax on donations made by UK taxpayers. This effectively increases the value of your donation by 25% at absolutely no extra cost to you.
How Does Gift Aid Work?
When you donate £100 and declare Gift Aid, the charity can reclaim £25 from HMRC. Your £100 becomes £125 — without you paying a single penny more. Over a year of regular giving, this adds up significantly.
For higher-rate taxpayers (40%), you can also claim back the difference on your self-assessment tax return. On a £100 donation, you can personally reclaim £25, meaning your donation effectively costs you only £75 while the charity receives £125.
Who Can Declare Gift Aid?
You can declare Gift Aid on your donations if:
- You are a UK taxpayer
- You have paid enough Income Tax and/or Capital Gains Tax in the current tax year to cover all Gift Aid claims made on your behalf
- The donation is from your own funds (not from a business or someone else's money)
- You are donating to a charity registered with HMRC for Gift Aid
Gift Aid on Zakat and Sadaqah
Yes — you can declare Gift Aid on both Zakat and Sadaqah donations. This means your Zakat of £1,000 becomes £1,250 for the charity — feeding more families, supporting more orphans, and building more wells. Many scholars consider the Gift Aid reclaim as additional Sadaqah from the government rather than from the donor's Zakat.
How to Declare Gift Aid
Simply tick the Gift Aid checkbox when making your donation. You make a one-time declaration that covers all future donations to that charity. We handle the paperwork with HMRC — there is nothing else you need to do.
Put This Into Practice
Fulfil your Zakat obligation through verified cash distribution to eligible recipients.
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