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Gift Aid is a tax incentive which allows charities to claim back Income Tax (at the basic rate) on donations made through the scheme. This means that any for £1 you donate through Gift Aid, the charity can actually receive £1.25.
If you’re a higher rate taxpayer (meaning you earn over £50,270) or additional rate taxpayer (earning over £150,000), then you can file a Self Assessment and claim Income Tax relief for the difference between your rate of tax (40% or 45%) and the basic rate (20%).
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