What Are the Rules for Gift Aid?
The giver must pay enough UK tax in the year to cover the Gift Aid every charity claims on their gifts. They must make a Gift Aid declaration, and the money must be their own.
The church must be recognised by HMRC as a charity for tax purposes. Anything the giver gets back must stay within HMRC’s limits. That’s 25% of a gift up to £100, plus 5% of anything above, up to £2,500 a year.
The church must keep records linking each claimed gift to a declaration. It must claim within 4 years of the end of the financial period the gift was received in.
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More questions about Gift Aid
- What Can a Church Claim Gift Aid On?
- Who Has to Repay the Gift Aid if the Donor Has Not Paid Enough Tax?
- Is There Any Downside to Gift Aid?
- Is a Church Classed as a Charity?
- How Does HMRC Know About Gift Aid?
- Can I Claim Gift Aid on Small Donations?
- What Donations Are Not Eligible for Gift Aid?
- Do Churches Have to Declare Donations?
- What Is the Gift Aid Small Donations Scheme (GASDS) for Churches?
- How Much Gift Aid Can You Claim on a Donation?
- What Should Be on a Gift Aid Declaration?
- How Long Does a Gift Aid Declaration Last?
- What Happens if You Gift Aid but Don’t Pay Tax?
- How Do I Make a Gift Aid Declaration Online?
Sources
These answers summarise official guidance. They aren’t legal or tax advice, so check anything you’re unsure about.