CLAN Cancer Support

How does Gift Aid work?

Gift Aid is a government initiative that allows donations given to charity to be tax-effective. As soon as you give your permission by completing a Gift Aid declaration form, we can claim the tax back on your donation. This means that a £10 donation will be worth £12.50.

Am I eligible for Gift Aid?

If you are a UK tax payer, and you pay enough tax*, yes. Even if you are not employed, you are still eligible if you are paying tax on any of the following:

• Personal or occupational pension
• Stocks and shares
• Bank and building society savings accounts
• Rental income
• Overseas and UK investment dividends

*You pay Income Tax and/or Capital Gains tax at a rate at least equal to the amount of Gift Aid claimed on all all your donations in that tax year, otherwise it is your responsibility to pay the difference.

Is my donation eligible for Gift Aid?

According to HMRC rules, certain donations are not eligible for Gift Aid. If your donation falls into any of the following categories, Gift Aid shouldn't be claimed:

• Donations made by anyone that is not a UK taxpayer
• Donations made on behalf of someone else or a group of people - For example, you collect money from your friends and family and then made a bulk donation. Even if they are UK taxpayers, the donation is not eligible. HMRC needs a Gift Aid declaration from each of the donors contributing to the collection.
• Donations made in return for something - For example, you are making a donation in return for a ticket to attend an event, or a raffle ticket.
• Donations made on behalf of a company - you can only make Gift Aid declarations on your own taxpayer status when spending your own money. However, the company can claim tax relief on the donation when donating directly to the charity.

Are you a higher rate taxpayer?

If you pay tax at a rate of 40% or above, you can claim the difference between the higher and basic rate on your donation. Do this:

• through your Self Assessment tax return
• by asking HM Revenue and Customs (HMRC) to amend your tax code

I’m a pensioner: do I pay tax?

You may pay tax on a private pension plan or on a savings account. You may also pay capital gains tax on the sale of property or shares.

Am I committing myself to give regularly?

Not at all, completing a Gift Aid declaration does not commit you to any future donations, but any you give – or have given in the past - may be covered by the declaration depending on what your gift aid status is.

What should I do if I move house, or change my name?

Please let us know if any of your circumstances change so that we can keep your record up-to-date on our systems.

How do I cancel my declaration?

Simply inform us that you are no longer a UK taxpayer, in writing or over the telephone, and we will stop reclaiming tax on your donations immediately.