Donating to charity is something many people do regularly, but the tax reliefs available are often misunderstood or underused. With the right approach, charitable giving can be both rewarding and tax‑efficient.
There are several reliefs available in the UK, depending on how you give. If you pay tax, using Gift Aid is the most common method of giving cash and higher / additional rate taxpayers may be able to claim further income tax relief. Other options are Payroll Giving via your employer or donating land, property, shares to charity which can attract both income tax and capital gains tax relief.
Leaving a legacy to charity in your will can play a wider role in tax and estate planning.
Some reliefs apply automatically, others need to be claimed, and a few come with conditions that are easy to overlook. Taken together, they can make a meaningful difference to both your tax position and the value received by the charities you support.
We’ve put together a Spotlight Report setting out the main charitable tax reliefs available and when they might be relevant. Follow this link to access the report: https://www.cklg.co.uk/wp-content/uploads/2026/05/Giving-to-charity-tax-reliefs-you-can-use-May-26.pdf
your questions answered
What tax relief can I get on charity donations?
When you donate to a UK charity, you may be eligible for tax relief, which can increase the value of your donation and potentially reduce your tax bill. The most common scheme is Gift Aid, which allows charities to claim back basic tax on your donation, boosting the amount they receive.
How does Gift Aid work?
Gift Aid allows charities to claim an extra 25p for every £1 you donate, meaning a £100 donation becomes £125 at no additional cost to you. If you are a higher or additional rate taxpayer, you may be able to claim additional tax relief through your tax return (or PAYE Coding Notice), reducing the cost of your donation.
Who is eligible to use Gift Aid?
To qualify, you must be a UK taxpayer and have paid enough Income Tax or Capital Gains Tax during the year to cover the amount the charity will reclaim. You also need to make a declaration confirming your eligibility when donating.
Are there other tax-efficient ways to donate to charity?
Yes, there are several alternatives. You can donate through your employer’s Payroll Giving scheme, which allows donations to be deducted from your salary before tax; or consider donating assets such as shares or property to claim income tax and capital gains tax relief. Leaving gifts to charity in your will can also reduce inheritance tax on your estate.
