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Giving & tax

Are charity donations tax deductible in the UK?

In short: Not in the way they are in the United States. UK donations work through Gift Aid: the charity reclaims basic-rate tax on your gift, and if you pay a higher rate you reclaim the difference yourself through Self Assessment. There is no simple deduction from taxable income for cash gifts.

Data from CharityCompare editorial, last updated .

The UK system differs from the US one, which causes a lot of confusion:

  • Basic-rate taxpayers — you claim nothing. The charity reclaims 25p per £1 through Gift Aid.
  • Higher-rate (40%) — reclaim roughly £25 on a £100 Gift Aided donation via Self Assessment or a tax-code adjustment.
  • Additional-rate (45%) — reclaim roughly £31 on the same £100.

Payroll Giving is the exception that behaves more like a deduction: the gift leaves gross pay before Income Tax, so relief is immediate at your top rate.

Gifts of shares, securities or land are more generous still — no Capital Gains Tax on the disposal and market value deductible against Income Tax.

This is general information, not tax advice — see tax-efficient giving.

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