A charity or community amateur sports club claims Gift Aid by reclaiming the basic rate tax treated as deducted from an individual’s donation, which is 25p for every £1 given. It needs a valid declaration from the donor, evidence that the donor was told about the tax consequences, and an audit trail linking each donation to the declaration. Claims are made through Charities Online within 4 years of the end of the relevant period, and small cash and contactless gifts can also attract a top up under the Gift Aid Small Donations Scheme.

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Which donations can a charity claim on?

Gift Aid applies to gifts of money from individuals. HMRC’s guidance says it cannot be claimed on donations from limited companies, through Payroll Giving, on payments for goods or services, where the donor receives a benefit above the limits, on gifts of shares, on charity vouchers such as CAF vouchers, on CASC membership fees, or on gifts received before the organisation was recognised as a charity or CASC for tax purposes. Companies get relief differently, as explained in company donations to charity, and gifts of shares or property are covered in gifts of assets to charity.

Chapter 3 of HMRC’s detailed guidance for charities adds two points that often come up. Cryptoassets are not money, so the donor must convert them before giving. And where a platform or card provider takes a fee, Gift Aid is due on the gross donation, but only if the charity can evidence the fee; otherwise it claims on the net amount received.

What must a Gift Aid declaration contain?

The declaration must describe the gift and give the name of the charity, the donor’s full name, home address and postcode, or state that they are a non UK donor. Donors in the Channel Islands or Isle of Man are treated as non UK donors and their postcode is left out. It must also show that the donor has paid enough Income Tax or Capital Gains Tax in the tax year to cover all their Gift Aid donations and agrees to Gift Aid being claimed.

HMRC does not issue an official form. Its model declarations for one off gifts, all donations and sponsored events can be adapted, and there is no need for a signature. A date is not legally required but helps where the period covered is otherwise unclear. The charity must explain the tax implications to the donor; HMRC says a bare statement such as “I am a UK taxpayer” is not enough. Declarations can be given in writing, including email or text, or orally, and can cover past donations within the claim time limit as well as future ones.

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How do oral declarations and cancellations work?

An oral declaration is only effective once the charity has either an auditable audio recording or has sent the donor a written record. That record must set out the details given, the date of the declaration and the donor’s right to cancel within 30 days. A cancellation within that window applies retrospectively, so any tax already reclaimed must be repaid. Otherwise a donor can cancel at any time, and the cancellation normally applies to donations received from the date of notice. Written statements returned as “not known at this address” should be treated as cancellations.

How do donor benefits limit a claim?

A donation still qualifies if the donor receives something in return, provided the benefit passes two tests in Chapter 3. Under the relevant value test the benefit must not exceed 25% of the donation for gifts up to £100, or £25 plus 5% of the amount above £100 for larger gifts. Under the aggregate value test the total benefits a donor receives from the same charity in a tax year must not exceed £2,500. HMRC’s example is an £80 donation with a £30 book in return: the limit is £20, so the donation fails and no Gift Aid is due.

How does a charity make a claim?

Claims go through Charities Online, accessed through an HMRC Online Services account. The charity can attach HMRC’s schedule spreadsheet, which takes up to 1,000 donations a claim, or submit from its own compatible software, which is required for claims of more than 1,000 donations. Paper claims on form ChR1 are available from the charities helpline. Two shortcuts reduce the listing work:

  • Aggregated donations: donations of £20 or less can be added together, up to £1,000 a line, without listing each donor, although records of each donation must still be kept.
  • Sponsored events: money raised by one participant can be entered under the participant’s name and address, provided each donation is under £500.

An accountant or other agent can claim only after the charity authorises them on form ChV1. HMRC’s guidance says payment by BACS should follow within 4 weeks for an online claim and 5 weeks for a paper claim.

What are the time limits?

A claim must be made within 4 years of the end of the period in which the donation was received. For a charitable trust that period is the tax year; for a charitable company, CIO or CASC it is the accounting period. Claims under the small donations scheme have a shorter limit of 2 years from the end of the tax year in which the donations were collected.

How does the Gift Aid Small Donations Scheme work?

The scheme lets a charity claim a 25% top up on cash donations of £30 or less, and on contactless card donations of £30 or less collected on or after 6 April 2019, without a declaration. Chapter 8 of HMRC’s guidance sets a maximum of £8,000 of small donations a tax year, worth a £2,000 top up. Three conditions apply:

  • The charity must also claim Gift Aid in the same tax year, and the small donations claimed cannot exceed 10 times the donations on which Gift Aid is claimed.
  • The charity must not have had a Gift Aid or scheme penalty in the last 2 tax years.
  • Connected charities share one £8,000 limit unless the community buildings rules apply. A community building must have hosted at least 6 charity events, each attended by at least 10 people.

Illustration only. A church receives £12,000 of declared Gift Aid donations and £6,000 of small cash collections in a year. Its Gift Aid claim is £3,000. The matching rule allows small donations of up to £120,000, so the £8,000 cap is the limit that bites, and the full £6,000 qualifies for a £1,500 top up.

What does HMRC check in a Gift Aid audit?

An HMRC auditor normally reviews a sample of donations, or all of them for a small charity, and asks for the declaration, any written statement sent to the donor, correspondence, and notices of change of address or cancellation. Typing declarations into a database is not enough on its own, because it does not show the donor made the declaration. Where records fall short, HMRC can recover the tax repaid with interest and charge a penalty. A charitable company must keep its records for 6 years after the end of the accounting period; a charitable trust must keep them until the later of 6 years after the tax year and 12 months after the claim. Enduring declarations must be kept for as long as donations continue.

What mistakes come up most often?

  • Claiming on payments that buy something, such as tickets or goods.
  • Declarations without a proper tax explanation.
  • Claiming on an oral declaration before the written record is sent.
  • Ignoring donor benefits such as dinners or discounts.
  • Missing the 4 year limit, which can be earlier than expected for a company with a non April year end.

The donor side, including higher rate relief and carry back, is covered in Gift Aid higher rate relief.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.