Charitable donations

Charitable donations are tax-free in the UK, meaning if you choose to donate, you can claim tax relief.

Most charities can claim gift aid on your donations, at the basic rate of tax (20%).

If you are a higher rate taxpayer and pay tax above 20%, you can claim the difference between the rate you pay and the basic rate on your donation.

You can claim back the difference between the tax you’ve paid on the donation and what the charity got back when you fill in your Self Assessment tax return.

If you donate land, property, or shares, you don’t have to pay tax on these, and can claim tax relief on both Income Tax and Capital Gains Tax (CGT).

Income tax relief is gained by deducting the value of your donation from your taxable income, and claiming via your Self Assessment Tax Return.

If you donate through your will, the value of your donation will be taken off the value of your estate. This means that your beneficiaries pay less Inheritance Tax (IHT). Your IHT rate will also be reduced if you leave more than 10% of your estate to charity, from 40% to 36%.